HAR §15-309-13. Interest on equity

The corporation may charge an interest rate on the corporation's equity, which shall be stated in the agreement with qualified purchasers. [Eff JAN 15 2024 I (Auth: sLH 2023, Act 92, SS1 and 2) (Imp: SLH 2023, Act 92, §§1 and 2) §15-309-14 Repayment of corporation's equity and payment of equity percentage share. (a) Qualified purchasers shall repay the corporation's equity (1) Any time after financial closing at will of the 309-7 3 5 2 7 purchaser; (2) Upon sale or transfer of the unit; (3) Prior to expiration of the thirty years from the qualified purchaser's sale closing date; (4) When the qualified purchaser obtains additional financing or refinances the original mortgage loan including to pay the corporation's net share of appreciation; (5) When the qualified purchaser no longer uses the unit as the qualified purchaser's principal and physical residence but continues to retain legal or equitable title to the unit, or both; (6) When the qualified purchaser rents the unit or any part of the unit to someone else but continues to retain legal or equitable title to the unit, or both; or (7) When the qualified purchaser fails to reoccupy the unit at the end of the temporary waiver period. (b) Payments accepted shall be applied in the following order of priority: corporation's (i) equity interest; (ii) equity percentage share, if any; and (iii) equity. (c) If the corporation's equity and equity percentage share is not paid when due, interest on the corporation's equity share shall accrue at the simple annual rate of ten per cent per year until paid. (d) If after thirty years a purchaser has not repaid the corporation's equity, including any accrued interest, and the corporation's equity percentage share, if any, the corporation may undertake the following actions to seek repayment: (1) Submittal of a demand letter to the qualified purchaser; (2) Placement of a lien on the unit; and (3) Judicial foreclosure of the unit. (e) Payment of the corporation's equity and equity percentage share, if any, shall be the sum of the following: (1) The corporation's equity plus simple interest at the rate of one per cent per year, unless otherwise indicated in the qualified purchaser's program agreement, on the corporation's equity to the qualified purchaser; and (2) The net appreciation on the corporation's equity calculated as the current value of the unit, minus the original value of the unit specified in the purchaser's program agreement, and multiplied by the corporation's equity percentage share. 309-8 purchaser; (2) Upon sale or transfer of the unit; (3) Prior to expiration of the thirty years from the qualified purchaser's sale closing date; (4) When the qualified purchaser obtains additional financing or refinances the original mortgage loan including to pay the corporation's net share of appreciation; (5) When the qualified purchaser no longer uses the unit as the qualified purchaser's principal and physical residence but continues to retain legal or equitable title to the unit, or both; (6) When the qualified purchaser rents the unit or any part of the unit to someone else but continues to retain legal or equitable title to the unit, or both; or ( 7) When the qualified purchaser fails to reoccupy the unit at the end of the temporary waiver period. (b) Payments accepted shall be applied in the following order of priority: corporation's (i) equity interest; (ii) equity percentage share, if any; and (iii) equity. (c) If the corporation's equity and equity percentage share is not paid when due, interest on the corporation's equity share shall accrue at the simple annual rate of ten per cent per year until paid. (d) If after thirty years a purchaser has not repaid the corporation's equity, including any accrued interest, and the corporation's equity percentage share, if any, the corporation may undertake the following actions to seek repayment: ( 1 ) Submittal of a demand letter to the qualified purchaser; (2 ) Placement of a lien on the unit; and (3) Judicial foreclosure of the unit. (e) Payment of the corporation's equity and equity percentage share, if any, shall be the sum of the following: (1 ) The corporation's equity plus simple interest at the rate of one per cent per year, unless otherwise indicated in the qualified purchaser's program agreement, on the corporation's equity to the qualified purchaser; and (2 ) The net appreciation on the corporation's equity calculated as the current value of the unit, minus the original value of the unit specified in the purchaser's program agreement, and multiplied by the corporation's equity percentage share. 309-8 ◊  2 i [Eff JAN and 2) 1 5 ;024 (Auth: SLH 2023, Act 92, §§1 (Imp: SLH 2023, Act 92, §§1 and 2)