§53-31  Mortgages and mortgage bonds. 
Any redevelopment corporation, subject to the approval of the redevelopment
agency, may borrow funds and secure the repayment thereof by bond and mortgage
or by an issue of bonds under a trust indenture.  Each mortgage or issue of
bonds of a redevelopment corporation shall relate only to a single specified
project and to no other and the bonds shall be secured by mortgage upon all of
the real property of which the project consists.  First lien bonds of the
redevelopment corporation when secured by a mortgage not exceeding ninety per
cent of the estimated cost prior to the completion of the project, or ninety
per cent of the appraised value or actual cost, but in no event, in excess of
ninety per cent of the total actual final cost, after the completion, as
certified by the agency, are hereby declared securities in which all public
officers and bodies of the State, all political subdivisions of the State, all
insurance companies and associations, all savings banks and savings
institutions, including savings and loan associations, personal
representatives, guardians, trustees, and all other persons and fiduciaries in
the State may properly and legally invest the funds within their control and
available for investment under other provisions of law.  The bonds so issued
and secured and the mortgage or trust indenture relating thereto, may create a
first or senior lien and a second or junior lien upon the real property
embraced in any project; provided that the total mortgage liens shall not
exceed ninety per cent of the estimated cost prior to the completion of the
project, or ninety per cent of the appraised value or actual cost, but in no
event in excess of ninety per cent of the total actual final cost after the
completion, as certified by the agency.  Where there are first and second
mortgage liens upon the property embraced in a project, only the first or
senior lien thereon shall be deemed a security in which the officer, bodies,
subdivisions, corporations, associations, and fiduciaries, may invest the funds
within their control.  The bonds and mortgages may contain such other clauses
and provisions as are approved by the agency, including the right to assignment
of rents and entry into possession in case of default; but the operation of the
redevelopment project in the event of the entry by mortgage or receiver shall
be subject to regulations promulgated by the agency.  Provisions for the
amortization of the bonded indebtedness of corporations formed under this part
shall be subject to the approval of the agency.  So long as funds made
available by the federal government or by instrumentality thereof or any
mortgage or mortgage bonds, insured by the federal housing administrator or any
other instrumentality of the federal government are used in financing, in whole
or in part, any project under this part, the proportionate amount of the cost
of the lands and improvements to be represented by mortgages or bonds shall be
entirely in the discretion of the agency, and all restrictions as to the
amounts to be represented by mortgages or bonds shall be inapplicable to the
projects or to redevelopment corporations undertaking the projects, except that
the bonds and mortgages covering any project shall not exceed the total actual
final cost of such project as defined in [paragraph] (2) of section 53-32.



Interest rates on mortgage indebtedness shall
not exceed such rates to be approved by the agency. [L 1949, c 379, §14; RL
1955, §143-30; am L 1959, c 96, §2; HRS §53-31; am L 1976, c 200, pt of §1]