HAR §16-178-5. §16-178-5 Non-applicability and exemption criteria

(a) The SMRF is not applicable to a document which does not constitute a mortgage. These documents include, but shall not be limited to: (1) A document confirming, amending, or correcting a mortgage without an increase in the debt; (2) An assumption of a mortgage; (3) A negative pledge; (4) An agreement of sale; and (5) Such other documents as determined by the HHRF or the bureau of conveyances in their sole discretion. (b) The SMRF shall be payable only once for a mortgage recorded concurrently with both the bureau of conveyances of the State and with the assistant registrar of the land court of the State. (c) The SMRF shall be collected only once with respect to the same debt secured by multiple mortgages which are recorded, provided that there is no increase in the amount of the debt. (1) Except as provided in paragraphs (2) or (3), if the SMRF based on the full debt is paid when the first mortgage securing the debt is recorded, the SMRF shall not be collected when further mortgages securing the same debt are recorded, provided that there is no increase in the amount of the debt. (2) If the SMRF was not previously paid when the prior mortgage securing the debt was recorded (e.g., the first mortgage was recorded prior to July 1, 1993 when the SMRF was implemented), the SMRF shall be paid when an additional security mortgage securing the same debt is recorded. The SMRF shall be calculated based on the amount of the then outstanding principal balance of the debt as stated in the additional security mortgage (or the then applicable maximum commitment in the case of an open-end revolving loan as stated in the additional security mortgage). (3) The following chart demonstrates the calculation of the SMRF when additional charge mortgages and additional security mortgages are recorded: 178-4 §16-178-5 Amount of Debt Secured by an Original Mortgage SMRF Recorded On or Before Post July 1, 1993 Calculated July 1, 1993 Changes On: 1. $10,000 Additional charge mortgage $ 2,000 adding $2,000 debt 2. $10,000 Additional security mortgage $10,000 to secure existing debt 3. $10,000 Additional security mortgage $12,000 plus additional charge mortgage adding $2,000 debt Amount of Debt Secured by an Original Mortgage SMRF Recorded After Post July 1, 1993 Calculated July 1, 1993 Changes On: 4. $10,000 Additional charge mortgage $ 2,000 adding $2,000 debt 5. $10,000 Additional security mortgage 0 for existing debt where there is no increase in debt and the SMRF has been previously paid on $10,000 6. $10,000 Additional security mortgage $ 2,000 plus additional charge mortgage adding $2,000 debt and the SMRF has been previously paid based on $10,000 [Eff 2/13/98] (Auth: HRS §431P-5) (Imp: HRS §§431P-5, 431P-16) 178-5 DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS Chapter 16-178, Hawaii Administrative Rules, on the Summary page dated December 11, 1997, was adopted on December 11, 1997, following a public hearing held on December 2, 1997, after public notices were given in The Honolulu Advertiser, Honolulu Star-Bulletin, Maui News, The Garden Island, West Hawaii Today, and the Hawaii Tribune-Herald on October 20, 1997. The adoption of chapter 16-178 shall take effect ten days after filing with the Office of the Lieutenant Governor. /s/ Janis C. Akuna JANIS C. AKUNA, Chairperson Hawaii Hurricane Relief Fund Board of Directors APPROVED AS TO FORM: Date 1/20/98 /s/ James F. Nagle Deputy Attorney General APROVED: Date 1/20/98 /s/ Kathryn S. Matayoshi KATHRYN S. MATAYOSHI, Director Commerce and Consumer Affairs APPROVED: Date 2/2/98 /s/ Benjamin J. Cayetano BENJAMIN J. CAYETANO Governor State of Hawaii February 3, 1998 Filed 178-7 DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS Adoption of Chapter 16-178 Hawaii Administrative Rules December 11, 1997 SUMMARY Chapter 16-178, Hawaii Administrative Rules, entitled "Administrative Special Mortgage Recording Fee Guidelines" is adopted.