§516-34  Mortgages, agreements of sale,
other instruments.  (a)  If an applicant who wishes to purchase the leased
fee interest in the applicant's residential leasehold lot is unable to obtain
sufficient funds at reasonable rates from private lenders, the Hawaii housing
finance and development corporation may, by way of mortgage, agreement of sale
or other instruments to secure the indebtedness, loan to the purchaser up to
ninety per cent of the purchase price; provided that such agreement of sale
shall be for a term not to exceed three years; provided further that the corporation,
upon its discretion, may extend such agreement of sale for not more than two
years if the lessee requests such extension.  In case of any dispute of the
extension of the agreement of sale, the lessee shall bear the burden of proof
to show good cause for such extension.



(b)  The purchaser of the leased fee interest
shall pay not less than ten per cent of the price and execute with the corporation
an agreement of sale, or mortgage, or other instrument to secure the
indebtedness under the terms of which the unpaid balance and the interest
thereon, at a reasonable rate determined by the corporation, shall be paid in
monthly installments over such periods as the corporation may determine.  Every
mortgage, agreement of sale, other instruments to secure the indebtedness, or
instrument of indebtedness shall be freely assignable by the corporation and
may contain such other provisions as are usually found in such instruments and
shall provide that the purchaser may prepay the whole or any part of the unpaid
balance of the purchase price plus accrued interest at any time without
prepayment penalty.



(c)  If the purchaser defaults on the payment
of any loan, the corporation shall take all necessary action to collect the
delinquent principal and interest on the loan and may take all actions allowed
to holders of obligations, including the power to repossess, purchase, lease,
rent, repair, renovate, modernize, and sell the property foreclosed. [L 1967, c
307, §23; HRS §516-34; am L 1968, c 46, §2g; am L 1975, c 184, §2(14); gen ch
1985; am L 1987, c 337, §16; am L 1988, c 104, §2; am L 1997, c 350, §14; am L
2005, c 196, §26(b); am L 2006, c 180, §16]