§53-31  Mortgages and mortgage bonds. Any redevelopment corporation, subject to the approval of the redevelopmentagency, may borrow funds and secure the repayment thereof by bond and mortgageor by an issue of bonds under a trust indenture.  Each mortgage or issue ofbonds of a redevelopment corporation shall relate only to a single specifiedproject and to no other and the bonds shall be secured by mortgage upon all ofthe real property of which the project consists.  First lien bonds of theredevelopment corporation when secured by a mortgage not exceeding ninety percent of the estimated cost prior to the completion of the project, or ninetyper cent of the appraised value or actual cost, but in no event, in excess ofninety per cent of the total actual final cost, after the completion, ascertified by the agency, are hereby declared securities in which all publicofficers and bodies of the State, all political subdivisions of the State, allinsurance companies and associations, all savings banks and savingsinstitutions, including savings and loan associations, personalrepresentatives, guardians, trustees, and all other persons and fiduciaries inthe State may properly and legally invest the funds within their control andavailable for investment under other provisions of law.  The bonds so issuedand secured and the mortgage or trust indenture relating thereto, may create afirst or senior lien and a second or junior lien upon the real propertyembraced in any project; provided that the total mortgage liens shall notexceed ninety per cent of the estimated cost prior to the completion of theproject, or ninety per cent of the appraised value or actual cost, but in noevent in excess of ninety per cent of the total actual final cost after thecompletion, as certified by the agency.  Where there are first and secondmortgage liens upon the property embraced in a project, only the first orsenior lien thereon shall be deemed a security in which the officer, bodies,subdivisions, corporations, associations, and fiduciaries, may invest the fundswithin their control.  The bonds and mortgages may contain such other clausesand provisions as are approved by the agency, including the right to assignmentof rents and entry into possession in case of default; but the operation of theredevelopment project in the event of the entry by mortgage or receiver shallbe subject to regulations promulgated by the agency.  Provisions for theamortization of the bonded indebtedness of corporations formed under this partshall be subject to the approval of the agency.  So long as funds madeavailable by the federal government or by instrumentality thereof or anymortgage or mortgage bonds, insured by the federal housing administrator or anyother instrumentality of the federal government are used in financing, in wholeor in part, any project under this part, the proportionate amount of the costof the lands and improvements to be represented by mortgages or bonds shall beentirely in the discretion of the agency, and all restrictions as to theamounts to be represented by mortgages or bonds shall be inapplicable to theprojects or to redevelopment corporations undertaking the projects, except thatthe bonds and mortgages covering any project shall not exceed the total actualfinal cost of such project as defined in [paragraph] (2) of section 53-32.

Interest rates on mortgage indebtedness shallnot exceed such rates to be approved by the agency. [L 1949, c 379, §14; RL1955, §143-30; am L 1959, c 96, §2; HRS §53-31; am L 1976, c 200, pt of §1]