[§506-7]  Mortgages on real property, damage
or destruction of collateral.  Notwithstanding any provisions to the
contrary in any agreement between a mortgagor and a mortgagee, if residential
real property which is the subject of a mortgage securing a loan is damaged or
destroyed by fire, earthquake, tidal wave or any natural disaster, the rate of
interest on the loan shall not be increased by reason of the damage or
destruction and the proceeds of any insurance insuring against such damage or
destruction shall be applied, at the option of the mortgagor, to reduce the
indebtedness due under the loan or to repair, restore or rebuild the
residential real property. [L 1980, c 188, §5]



 



Law Journals and Reviews



 



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