HAR §15-305-17. Financial qualification

(a) After the setting of the qualification amounts, the corporation shall give each lessee who has submitted an application to purchase a notice by certified mail sent to the lessee's last known address, informing the lessee of the qualification amount for the lot and requesting that the lessee submit the following financial information; (1) An accurate and updated financial statement; and (2) A true and correct copy of a letter of credit, certificate of deposit, proof of funds, or loan commitment letter demonstrating that the lessee is able to pay the qualification amount. (3) Evidence of other assets such as precious metals, coins, jewelry, stocks, bonds, etc., may be acceptable as proof of funds provided that verification is made and attested to by, a qualified independent financial officer, broker, appraiser, etc. (b) The lessee shall comply with the requirements of subsection (a) within sixty days from the date of notice. (c) Failure of a lessee to submit the required documentation shall make the lessee's application defective, thereby precluding the lessee from proceeding with designation of the lessee's lot as described in paragraph 15-305-21 (1). 305-10 §15-305-18 (d) If after first designation, a lessee is then able to submit the required documentation within sixty calendar days after the date of first designation, the lessee's lot may be designated as described in subparagraph 15-305-21(4) (A). (e) Proof of funds may be waived in instances where a settlement has been reached for a development tract and financing for the fee purchase is to be provided by the lessor. All parties involved must agree to forego the proof of funds in these types of situations. The lessor, however, shall be required to submit a listing of all lessees to whom financing will be committed. Any lessee who does not qualify for lessor financing shall be required to submit proof of funds as cited in subsection (a) . [Eff l/UN I 5 2007 l (Auth: HRS §516-7) (Imp: HRS §§516-6, 516-7)