§480E-2  Definitions.  As used in
this chapter, unless the context otherwise requires:



"Consideration" means any payment or
thing of value provided to an owner of a distressed property, including
reasonable costs paid to independent third parties necessary to complete the
distressed property conveyance or payment of money to satisfy a debt or legal
obligation of an owner of the distressed property.  "Consideration"
shall not include any amounts paid or to be paid directly or indirectly to the
distressed property purchaser, including amounts identified as "gift
equity", "fees", "escrow", or "down
payment".



"Distressed property" means any
residential real property that: 



(1)  Is in foreclosure or at risk of foreclosure
because payment of any loan that is secured by the residential real property is
more than sixty days delinquent;



(2)  Had a lien or encumbrance charged against it
because of nonpayment of any taxes, lease assessments, association fees, or
maintenance fees;



(3)  Is at risk of having a lien or encumbrance
charged against it because the payments of any taxes, lease assessments,
association fees, or maintenance fees are more than ninety days delinquent;



(4)  Secures a loan for which a notice of default has
been given; or



(5)  Secures a loan that has been accelerated. 



"Distressed property consultant"
means any person who performs or makes any solicitation, representation, or
offer to perform any of the following relating to a distressed property:



(1)  Stop or postpone the foreclosure sale or loss of
any distressed property due to the nonpayment of any loan that is secured by
the distressed property;



(2)  Stop or postpone the charging of any lien or
encumbrance against any distressed property or eliminate any lien or
encumbrance charged against any distressed property for the nonpayment of any
taxes, lease assessments, association fees, or maintenance fees;



(3)  Obtain any forbearance from any beneficiary or
mortgagee, or relief with respect to a tax sale of the property;



(4)  Assist the owner to exercise any cure of default
arising under Hawaii law;



(5)  Obtain any extension of the period within which
the owner may reinstate the owner's rights with respect to the property;



(6)  Obtain any waiver of an acceleration clause
contained in any promissory note or contract secured by a mortgage on a
distressed property or contained in the mortgage;



(7)  Assist the owner in foreclosure, loan default, or
post-tax sale redemption period to obtain a loan or advance of funds;



(8)  Avoid or ameliorate the impairment of the owner's
credit resulting from the recording or filing of a notice of default or the
conduct of a foreclosure sale or tax sale; or



(9)  Save the owner's residence from foreclosure or
loss of home due to nonpayment of taxes.



"Distressed property consultant"
shall not include any of the following: 



(1)  A person or the person's authorized agent acting
under the express authority or written approval of the federal Department of
Housing and Urban Development;



(2)  A person who holds or is owed an obligation
secured by a lien on any distressed property, or a person acting under the
express authorization or written approval of such person, when the person
performs services in connection with the obligation or lien, if the obligation
or lien did not arise as the result of or as part of a proposed distressed
property conveyance;



(3)  Banks, savings banks, savings and loan
associations, credit unions, trust companies, depository and nondepository
financial service loan companies, and insurance companies organized, chartered,
or holding a certificate of authority to do business under the laws of this
State or any other state, or under the laws of the United States;



(4)  Licensed attorneys engaged in the practice of
law;



(5)  Certified public accountants licensed under
chapter 466, persons holding a permit to practice public accountancy in the
State of Hawaii, and persons holding a valid certified public accountant
license issued under the laws of another state or territory who are lawfully
practicing in the State of Hawaii with a temporary permit to practice pursuant
to rules established by the board of public accountancy and who are subject to
regulation by the board of public accountancy while engaged in the practice of
public accountancy;



(6)  A federal Department of Housing and Urban
Development approved mortgagee and any subsidiary or affiliate of these persons
or entities, and any agent or employee of these persons or entities, while
engaged in the business of these persons or entities;



(7)  A nonprofit organization that, pursuant to
chapter 446, offers counseling or advice to an owner of a distressed property,
if the nonprofit organization has no contract or agreement for services with
lenders, distressed property purchasers, or any person who effects loans or
distressed property purchases; or



[(8)] A person currently licensed as an active real
estate broker or real estate salesperson in Hawaii pursuant to chapter 467,
when acting in the capacity of a real estate broker or real estate salesperson
in accordance with customary industry standards.



"Distressed property consultant
contract" means any agreement or obligation between an owner or agent of
an owner of a distressed property and a distressed property consultant. 



"Distressed property conveyance"
means the transfer of any interest in a distressed property effected directly
or indirectly by or through a distressed property consultant. 



"Distressed property conveyance
contract" means any agreement or obligation affecting a distressed property
conveyance.



"Distressed property lease" means any
agreement or obligation regarding the lease or rental of a distressed property
effected directly or indirectly by or through a distressed property consultant
or distressed property purchaser.



"Distressed property purchaser" means
any person who acquires any interest in a distressed property directly or
indirectly through a distressed property conveyance or distressed property
conveyance contract.



"Material fact" means a fact that, if
disclosed, might have influenced the distressed property owner to not enter
into the agreement or obligation.



"Person" means any individual,
partnership, corporation, limited liability company, association, or other
group or entity, however organized. [L 2008, c 137, pt of §2; am L 2009, c 66,
§2 and c 73, §2]