Haw. Code R. § 4-9-7 - Conditions

(a) Every borrower who is granted a loan shall comply with the following conditions:

(1) Expend no portion of his loan for purposes other than those sanctioned by the department;

(2) Carry out recommended management practices, including the keeping of proper records;

(3) Not sell or otherwise dispose of the mortgaged property except on written consent of the department and except upon such conditions as may be prescribed in writing by the department.

(4) Undertake to pay, when due, all taxes, liens, judgments, or assessments which may be lawfully assessed against the mortgaged property, together with the costs and expense of any foreclosure of the mortgaged property;

(5) Keep insured to the satisfaction of the department all buildings and other insurable property covered by the mortgage. Insurance shall be made payable to the mortgagee as its interest may appear at the time of the loss. At the option of the lender, and subject to the general regulations of the department, sums so received may be used to pay for reconstruction of the buildings destroyed, or for decreasing the amount of the indebtedness; and

(6) Keep buildings and equipment in good repair, provide proper care for improvements, stock and implements, keep land free from noxious weeds, and practice a good system of husbandry.

(b) If the borrower is in default in respect to the above conditions, or any other conditions, or any other condition or covenant of the mortgage, the whole of the loan shall, at the option of the lender become due and payable forthwith. The lender may, with or without notice, take possession of the mortgaged property pending a foreclosure and may carry on aquacultural pursuits upon the mortgaged premises, expending all reasonable sums therefor. Such sums shall be a lien on the mortgaged premises and be recoverable in any foreclosure proceedings or otherwise. The lender may foreclose the mortgage by any method provided for by law.

Notes

Haw. Code R. § 4-9-7

[Eff 9/28/81] (Auth: HRS § 219-5) (Imp: HRS § 219-5, 6, 7, 8; HRS § 219-6)