Haw. Code R. § 6-27-21 - Interest rate
(a) The interest
rate for member home loan mortgages shall be set and may be periodically
adjusted by the board of trustees at any of its regularly scheduled meetings.
Notice of the board's intention to adjust the interest rate shall be included
in the agenda for the meeting at which the rate will be set or
adjusted.
(b) An active member of
the system or retirant may apply with the lender servicing the loan for an
interest rate reduction if the system's prevailing interest rate is less than
the interest rate on the borrower's original note, subject to all of the
following conditions:
(1) The active member
of the system or retirant shall be currently residing on the mortgaged
property;
(2) The lender servicing
the loan, may charge a fee of one-half of one per cent of the loan balance, but
in no event more than $300;
(3)
Only one interest rate reduction shall be allowed during the term of the
loan;
(4) The borrower(s) shall
complete a loan application and execute a revision agreement;
(5) The loan shall be reamortized over its
remaining term;
(6) The new
interest rate shall become effective the first day of the month after the
borrower's execution of the revision agreement;
(7) The mortgage loan shall be current in
monthly installments;
(8) The
revision agreement shall be executed by all the borrower(s).
Notes
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