§506-1  Lien of mortgages of real property
or fixtures; debts secured; priority.  (a)  Every transfer of an interest
in real property or fixtures made as security for the performance of another
act or subject to defeasance upon the payment of an obligation, whether the
transfer is made in trust or otherwise, is to be deemed a mortgage and shall
create a lien only as security for the obligation and shall not be deemed to
pass title.



(b)  A mortgage may secure the repayment of
past debt, a debt incurred at the time the mortgage is executed, or a debt
incurred for advances which may be made by the mortgagee subsequent to the
execution of the mortgage even though the mortgagee is under no contractual
duty to make these advances.  Except as otherwise provided in sections
490:9-334 and 490:9-604 of the Uniform Commercial Code with respect to security
interests in fixtures, a mortgage which secures future advances, up to but not
exceeding the maximum amount of future advances stated in the mortgage, shall
be superior to any subsequently recorded mortgage, lien, or other encumbrances
or conveyance, other than liens for real property taxes and assessments for
public improvements, even though the subsequently recorded mortgage, lien, or
other encumbrance or conveyance is recorded prior to the date upon which any
advance or advances have been made. [L 1939, c 255, pt of §1; RL 1945, §8871;
am L 1951, c 202, §1; RL 1955, §196-1; am L 1966, c 18, §5(b); HRS §506-1; am L
1986, c 28, §1; am L 1987, c 275, §1; am L 2000, c 241, §5]



 



Law Journals and Reviews



 



  Hawai‘i 2000 Report Regarding Lawyers' Opinion Letters in
Mortgage Loan Transactions.  22 UH L. Rev. 347.



 



Case Notes



 



  Agreement of sale is not a mortgage.  324 F. Supp. 1314.



  Cited in connection with construction of bill of sale of
automobile under prior law which included personal property under this
section.  38 H. 279.



  Deed accompanied by lease-back with option to repurchase
construed as mortgage under the circumstances.  49 H. 160, 413 P.2d 221, reh'g
den. 49 H. 255, 413 P.2d 221.



  Mortgages for future advances; scope of coverage determined. 
50 H. 304, 440 P.2d 262.



  Where an absolute conveyance contains a defeasance clause,
the instrument is a mortgage.  50 H. 493, 443 P.2d 153.



  General creditor of mortgagor has standing to contest amount
due mortgagee in foreclosure proceeding.  54 H. 107, 503 P.2d 424.



  Decree of foreclosure and order of sale as appealable final
orders.  55 H. 414, 520 P.2d 431.



  Cited as authority for mortgages securing past debts.  60 H.
413, 591 P.2d 104.



  Foreclosure decree is deemed final for appeal purposes
although many matters remain unsettled.  2 H. App. 140, 627 P.2d 296.