HAR §6-27-21. Interest rate

(a) The interest rate for member home loan mortgages shall be set and may be periodically adjusted by the board of trustees at any of its regularly scheduled meetings. Notice of the board’s intention to adjust the interest rate shall be included in the agenda for the meeting at which the rate will be set or adjusted. (b) An active member of the system or retirant may apply with the lender servicing the loan for an interest rate reduction if the system’s prevailing interest rate is less than the interest rate on the borrower’s original note, subject to all of the following conditions: (1) The active member of the system or retirant shall be currently residing on the mortgaged property; (2) The lender servicing the loan, may charge a fee of one-half of one per cent of the loan balance, but in no event more than $300; (3) Only one interest rate reduction shall be allowed during the term of the loan; (4) The borrower(s) shall complete a loan application and execute a revision agreement; (5) The loan shall be reamortized over its remaining term; (6) The new interest rate shall become effective the first day of the month after the borrower’s execution of the revision agreement; (7) The mortgage loan shall be current in monthly installments; (8) The revision agreement shall be executed by all the borrower(s). [Eff 2/9/89; am 6/11/92] (Auth: HRS §§88-28, 88-119.5) (Imp: HRS §§88-119, 88-119.5) §6-27-22