HAR §4-9-7
HAR §4-9-7. Conditions
Cite as Haw. Code R. § 4-9-7
(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;
9-4
(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. [Eff 9/28/81] (Auth:
HRS §219-5) (Imp: HRS §219-5, 6, 7, 8; HRS §219-6)
9-5