§155-12  Conditions.  Every borrower whois granted a loan under this chapter shall comply with the followingconditions:

(1)  Expend no portion of the borrower's loan forpurposes other than those sanctioned by the department of agriculture;

(2)  Carry out recommended management practices,including the keeping of proper records;

(3)  Not sell or otherwise dispose of the mortgagedproperty except on written consent of the lender, and except upon conditions asmay be prescribed in writing by the lender;

(4)  Undertake to pay, when due, all taxes, liens,judgments, or assessments that may be lawfully assessed against the propertymortgaged, together with the costs and expense of any foreclosure of themortgage;

(5)  Keep insured to the satisfaction of the departmentall buildings and other insurable property covered by the mortgage.  Insuranceshall be made payable to the mortgagee as its interests may appear at the timeof the loss.  At the option of the lender, and subject to the generalregulations of the department, sums so received may be used to pay forreconstruction of the buildings destroyed, or for decreasing the amount of theindebtedness;

(6)  Keep buildings in good repair; provide propercare for improvements, stock, and implements; keep land free from noxiousweeds; and practice good systems of husbandry;

(7)  All of the above conditions shall be held andconstrued to be a provision of any mortgage executed by virtue of this chapterwhether appearing as a provision of the mortgage or not; and

(8)  If the borrower is in default in respect to theabove conditions, or any other conditions, or any other condition or covenantof the mortgage, the whole of the loan shall, at the option of the lenderbecome due and payable forthwith.  The lender may, with or without notice, takepossession of the mortgaged property pending a foreclosure and may carry on thebusiness pursuits upon the mortgaged premises, expending all reasonable sumstherefor.  The sums shall be a lien on the mortgaged premises and be recoverablein any foreclosure proceedings or otherwise.  The lender may foreclose themortgage by any method provided for by law. [L 1959, c 278, pt of §1; am L Sp1959 2d, c 1, §25; am L 1961, c 104, §1(n) and c 132, §2; Supp, §102-12; HRS§155-12; gen ch 1985; am L 2000, c 51, §13]