HAR §4-8-29. Waiver of payment and extension

(a) When inability to meet a scheduled payment is caused by a natural catastrophe, depressed prices, or other external factors beyond the borrower's control, the borrower may request the department for a waiver of payment. In its discretion, the department may grant the waiver. A waiver is normally for a limited period of six months or less at which time the borrower's situation shall be reviewed by the division. The department shall not grant a waiver where reasonable assurance of repayment in the future is lacking, collateral for the loan will be jeopardized, or where the borrower otherwise has not complied with the loan requirements. 8-16 (b) Upon request for waiver, the chairperson may grant an extension for more than six months where the division finds that: (1) The borrower cannot meet payment schedule even after a waiver of six months, because of prolonged natural or economic disaster; (2) The borrower cannot meet more than fifty per cent of its annual payment; and (3) The borrower would require a period of one year or longer to recover from the effects of depressed prices, natural catastrophe, or other external factors beyond borrower's control. (c) If the department grants an extension, the extension may be subject to any one or more of the following conditions: (1) The borrower shall agree to special conditions with regard to extension. (2) The interest on the borrower's existing loans from the department shall be brought to current status. (3) The borrower shall make monthly payments on the existing loans from the department through an assignment of income. (4) There shall be a year end analysis and review of the borrower's financial status. [Eff 1/31/85; comp 9/20/86] (Auth: HRS §155-4) (Imp: HRS §§155-4, 155-13)