HAR §4-8-30. Subordination and partial release

(a) A direct loan borrower may apply to the division for a subordination or partial release of collateral. The division will review such requests on a case-by-case basis. (b) The chairperson may approve a request for subordination or partial release if the borrower meets any one or more of the following conditions: (1) The borrower shall reduce its loan balance; (2) The borrower is current on loan payments and there is sufficient security to cover requests; (3) The borrower shall add to or substitute the security with other security of better value 8-17 (especially for borrowers with average or below average performance); and (4) The borrower shall strengthen the State's security position by assigning payments to the department through a person, a bank, a wholesaler, or a cooperative, and the borrower shall bring all its delinquent loans to current status. [Eff 1/31/85; comp 9/20/86] (Auth: HRS §155-4) (Imp: HRS §155-4)