NOTICE OF PUBLIC HEARING
DEPARTMENT OF BUDGET AND FINANCE
OF THE STATE OF HAWAII
SPECIAL PURPOSE REVENUE BONDS
(ISLAND PACIFIC ACADEMY PROJECT)
SERIES 2007

Notice is hereby given that the Department of Budget and Finance of the State of Hawaii (the \u201DDepartment\u201D) will hold a public hearing on September 18, 2007 at 10:00 a.m. at the Department of Budget and Finance Conference Room 306, at 250 South Hotel Street, No. 1 Capitol District, as part of the public approval of its proposed issuance of special purpose revenue bonds in an aggregate principal amount not expected to exceed $20,000,000.00, for the purpose described below, and which may be issued from time to time, in one or more series pursuant to the Department\u2019s plan of financing. This notice is being given pursuant to Section 147(f) of the United States Internal Revenue Code of 1986. The proceeds of the bonds will be loaned to Island Pacific Academy, Inc. (the \u201DBorrower\u201D) for the purpose of (A) refinancing a portion of a loan the proceeds of which were used to finance the planning, construction, and equipping of certain educational facilities owned and operated by the Borrower and located on the existing campus of Island Pacific Academy at 909 Haumea Street, Kapolei, Hawaii 96707, including but not limited to, the Upper School and Middle School classrooms (the \u201DLoan\u201D), and (B) paying a portion of the administrative, legal, accounting, financing and other expenses incidental to the refinancing of the Loan, the issuance of the bonds and related purposes.

The proposed issuance will consist of special purpose revenue bonds, and the principal of and interest thereon will be payable solely from revenues received by or for the account of the Department pursuant to or with respect to a financing agreement to be entered into by the Department and the Borrower. The proposed bonds shall not constitute a general or moral obligation of the State of Hawaii or charge upon the general fund of the State, and the full faith and credit of the State of Hawaii will not be pledged to the payment of the principal or premium, if any, or interest on the proposed bonds.

All interested persons are invited to attend the hearing and express their views regarding the proposed issuance and the Department\u2019s plan of financing, either orally or in writing. If written comments are offered, a copy of such comments should be made available to the Department on or before the public hearing. Further information may be obtained by calling the Department at (808) 586-1612 during business hours.

The meeting location is disability accessible. If special needs are required (i.e., large print, taped materials, sign language interpreter, etc.) call Mr. Scott Kami at (808) 586-1612 by September 10, 2007. Those who are deaf or are hard of hearing, call relay telephone number 1-877-447-5990 or 711.

DEPARTMENT OF BUDGET AND FINANCE OF THE STATE OF HAWAII (SB05531664 8/31/07)