HAR §4-8-19. Disbursement of loan funds

(a) Loan funds shall be disbursed only after the lien instruments have been recorded at the bureau on conveyances of the State of Hawaii. (b) The request for funds shall be initiated by the borrower and is subject to approval by the loan officer. (c) Disbursements shall be made according to approved loan purpose. The borrower may request single or multi-disbursements, subject to approval by the loan officer. (d) For multi-disbursements, loan funds shall be disbursed through a supervised account opened at a bank or a savings and loan institution. A deposit agreement shall be executed by the borrower, the financial institution, and the State. 8-13 (e) When disbursement of loan funds involve single or only a few payments that are easily acknowledgeable such as for purchase of land or equipment, direct disbursement can be made to the escrow company or vendor. Acknowledgement shall be required. (f) Any change in the use of loan funds requires the prior written approval of the department. (g) The borrower shall provide the division with copies of invoices or statements prior to disbursements. [Eff 1/31/85; am and comp 9/20/86] (Auth: HRS §155-4) (Imp: HRS §§155-4, 155-12) SUBCHAPTER 2 LOAN SERVICING