HAR §6-27-20. Security for loans

(a) Member home loans shall be secured by: (1) First mortgages on unencumbered improved real estate owned in fee simple; or (2) First mortgages on leasehold interests in improved real estate. (b) Leasehold conversion loans shall be secured by a first mortgage on the fee simple interest and a second mortgage on the leasehold interest on improved real estate. For the purpose of this section, improved real estate owned in fee simple is unencumbered notwithstanding the existence of: (1) Instruments reserving mineral, oil, timber, or similar rights, rights of way, sewer rights, rights in walls; §6-27-21 (2) Any liens for taxes or assessments not yet due; (3) Liens not delinquent for community recreation facilities or for the maintenance of community facilities; (4) Building restrictions or other restrictive covenants common to the community in which the property is located; (5) Liens for service and maintenance of water rights where not delinquent. [Eff 2/9/89] (Auth: HRS §§88-28, 88-119) (Imp: HRS §§88-119, 88-119.5)