§155-12  Conditions.  Every borrower who
is granted a loan under this chapter shall comply with the following
conditions:



(1)  Expend no portion of the borrower's loan for
purposes 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 mortgaged
property except on written consent of the lender, and except upon conditions as
may 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 property
mortgaged, together with the costs and expense of any foreclosure of the
mortgage;



(5)  Keep insured to the satisfaction of the department
all buildings and other insurable property covered by the mortgage.  Insurance
shall be made payable to the mortgagee as its interests may appear at the time
of the loss.  At the option of the lender, and subject to the general
regulations of the department, sums so received may be used to pay for
reconstruction of the buildings destroyed, or for decreasing the amount of the
indebtedness;



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



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



(8)  If the borrower is in default in respect to the
above conditions, or any other conditions, or any other condition or covenant
of the mortgage, the whole of the loan shall, at the option of the lender
become due and payable forthwith.  The lender may, with or without notice, take
possession of the mortgaged property pending a foreclosure and may carry on the
business pursuits upon the mortgaged premises, expending all reasonable sums
therefor.  The sums shall be a lien on the mortgaged premises and be recoverable
in any foreclosure proceedings or otherwise.  The lender may foreclose the
mortgage by any method provided for by law. [L 1959, c 278, pt of §1; am L Sp
1959 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]