§171-22  Consent to mortgage.  Wheneverunder this chapter or under any lease, license, permit, or other instrumentissued by the board of land and natural resources, consent of the State isrequired as a condition precedent to the mortgage of, or the creation of asecurity interest in public land, the chairperson of the board may, upon dueapplication, grant the consent, and if the mortgage or security interest is toa recognized lending institution authorized to do business as a lendinginstitution in either the State or elsewhere in the United States, the consentmay extend to foreclosure and sale at the foreclosure to any purchaser,including the mortgagee, without regard to whether or not the purchaser isqualified under this chapter to lease, own, or otherwise acquire and hold theland or any interest therein.  The interest of the mortgagee or holder shall befreely assignable.  The term "holder" includes an insurer orguarantor of the obligation or condition of the mortgage, including the FederalHousing Administration, the Federal National Mortgage Association, the VeteransAdministration, the Small Business Administration, the United States Departmentof Agriculture, or any other federal agency and their respective successors andassigns, or any lending institution authorized to do business in the State orelsewhere in the United States; provided that the consent to mortgage to anongovernmental holder shall not confer any greater rights or powers in theholder than those which would be required by any of the aforementioned federalagencies.

Notwithstanding any provision in this chapterto the contrary, in leases or sales for residential purposes, the board maywaive or modify any restrictions of the lease or sale or any restrictionscontained in any such lease or sale if the waiver or modification is necessaryto enable any of the aforementioned federal agencies or any lending institutionauthorized to do business in the State or elsewhere in the United States toparticipate in any loan secured by a mortgage on the land or the leaseholdinterest; provided any such waiver or modification shall not confer any greaterrights or powers in the holder than those which would be required by theFederal Housing Administration or the United States Department of Agriculture.[L 1962, c 32, pt of §2; am L 1963, c 189, §1; am L 1965, c 239, §13; Supp,§103A-22; HRS §171-22; am L 1985, c 50, §1; ree L 1986, c 252, §1; am L 1997, c258, §5]