§171-22  Consent to mortgage.  Whenever
under this chapter or under any lease, license, permit, or other instrument
issued by the board of land and natural resources, consent of the State is
required as a condition precedent to the mortgage of, or the creation of a
security interest in public land, the chairperson of the board may, upon due
application, grant the consent, and if the mortgage or security interest is to
a recognized lending institution authorized to do business as a lending
institution in either the State or elsewhere in the United States, the consent
may extend to foreclosure and sale at the foreclosure to any purchaser,
including the mortgagee, without regard to whether or not the purchaser is
qualified under this chapter to lease, own, or otherwise acquire and hold the
land or any interest therein.  The interest of the mortgagee or holder shall be
freely assignable.  The term "holder" includes an insurer or
guarantor of the obligation or condition of the mortgage, including the Federal
Housing Administration, the Federal National Mortgage Association, the Veterans
Administration, the Small Business Administration, the United States Department
of Agriculture, or any other federal agency and their respective successors and
assigns, or any lending institution authorized to do business in the State or
elsewhere in the United States; provided that the consent to mortgage to a
nongovernmental holder shall not confer any greater rights or powers in the
holder than those which would be required by any of the aforementioned federal
agencies.



Notwithstanding any provision in this chapter
to the contrary, in leases or sales for residential purposes, the board may
waive or modify any restrictions of the lease or sale or any restrictions
contained in any such lease or sale if the waiver or modification is necessary
to enable any of the aforementioned federal agencies or any lending institution
authorized to do business in the State or elsewhere in the United States to
participate in any loan secured by a mortgage on the land or the leasehold
interest; provided any such waiver or modification shall not confer any greater
rights or powers in the holder than those which would be required by the
Federal 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, c
258, §5]