HAR §15-4-11. Security for loans

The director shall not require any security for a loan if the applicant can show to the director's satisfaction that none is available. However, when property other than personal property and inventory is purchased with loan funds, a mortgage or pledge of such property shall be required as security for the loan. The director may permit the mortgage or pledge to be subordinated to the lien of a financial institution or government lending agency in the event the subordination should become necessary for the borrower to secure additional funds. [Eff. JUL 6 1981] (Auth: HRS §209- 26) (Imp: HRS §209-31)