§206-11  Breach, mortgaging, effect ofbreach, etc.  (a)  Effect of breach of restriction.  Except as otherwiseprovided in this chapter any sale or attempted sale, contract, or conveyancecontrary to section 206-10 shall be void.  Any use contrary to section 206-10may be enjoined by the State, the board of land and natural resources or anowner or owners of the residence lots within the same development project. Except as otherwise provided in this chapter, if a sale, contract, orconveyance contrary to section 206-10 is attempted, or a use contrary tosection 206-10 is not voluntarily remedied or is not or cannot be remedied byinjunction, or a building is not erected in accordance with section 206-10(d),the lot affected shall be forfeited and the title revested in the State uponsuit by the State establishing any of the foregoing.  Upon the forfeiture, theboard shall sell the lot at public auction, or at private sale, for the currentmarket value, to a purchaser eligible to purchase from the board in the firstinstance, and the original purchaser shall be reimbursed insofar as possible,after deduction of costs of resale.  Provided that in the event title to anylot passes to any obligee, or to any agency of the United States government,pursuant to the terms of any insurance or guarantee of mortgage loss by suchagency, no forfeiture or revesting in the board shall be enforced.

(b)  Mortgage of residence lots.  Nothingherein shall prevent the conveyance of a residence lot by way of mortgage toany person or corporation.

(c)  Nothing in this chapter shall be construedas limiting the power of the board:  (1) to vest in an obligee the right, inthe event of a default by the board or by the purchaser, to take possession ofa development project or lot or cause the appointment of a receiver thereof,free from all the restrictions imposed by this chapter; or (2) to vest in theobligee the right, in the event of a default by the purchaser, to acquire titleto a lot or the property mortgaged by the purchaser free from all therestrictions imposed by this chapter. [L 1961, c 6, pt of §10; Supp, pt of§98J-10; HRS §206-11]