COM 1109.000 2020-2022 - Laserfiche WebLink

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(ii) Section 3 of the Ordinance of Formation (as amended as aforesaid) provides that, for so long as any Bonds remain Outstanding, if any Special Taxes remain unpaid for sixty (60) days after their respective due dates, the County may enforce the lien of the delinquent Special Taxes by non judicial foreclosure sale without regard to the two-year period specified in Section 19-38 of the County Code, subject to the further covenants and agreements set forth in this Indenture. Pursuant to such provision, the County hereby covenants and agrees that, for so long as any Bonds remain Outstanding (A) with respect to Taxable Property in Tax Zone 1, if it determines on any April 30 or October 31 that any such Taxable Property (or Properties) owned by the same Person is (or are) delinquent in payment of more than $10,000 of Special Taxes or that the amount of delinquent Special Taxes exceeds five percent (5%) of the total amount of Special Taxes payable as of the preceding February 15 or August 15, the County shall promptly give notice to the owner(or owners) of such delinquent Taxable Property (or Properties) of a non judicial foreclosure sale of the delinquent property or properties and shall initiate and diligently pursue proceedings for such non judicial foreclosure sale as permitted by Section 3 of the Ordinance of Formation (as amended as aforesaid), and (B) with respect to Taxable Property in Tax Zone 2, if it determines that any such Taxable Property(or Properties) is (or are) delinquent in payment of Special Taxes and if such Special Taxes remain delinquent for sixty (60) days after they are due and payable, the County shall promptly give notice to the owner (or owners) of such delinquent Taxable Property (or Properties) of a non judicial foreclosure sale of the delinquent property or properties and shall initiate and diligently pursue proceedings for such non judicial foreclosure sale as permitted by Section 3 of the Ordinance of Formation (as amended as aforesaid) . (iii) Proceeds of each foreclosure sale to enforce the lien of delinquent Special Taxes, in an amount equal to the delinquent Special Taxes plus penalties and interest thereon, shall be transferred to the Trustee for deposit in the Special Tax Fund. (b) Section 3 of the Ordinance of Formation (as amended as aforesaid) permits the liens of delinquent Special Taxes, Real Property Taxes or special assessments levied under Section 46-80, Hawaii Revised Statutes ("Special Assessments"), to be foreclosed either (i) together in a single sale to satisfy all such liens, or (ii) in separate sales to satisfy the lien of the delinquent Special Taxes, Real Property Taxes or Special Assessments; provided that, in the case of a single sale, if the proceeds of the sale are insufficient to pay the total amount due with respect to all Real Property Taxes, Special Taxes and Special Assessments on the property, then the Director may apply the amount collected first to Real Property Taxes, second to the Special Tax levied hereunder, and third to Special Assessments, together with all applicable charges for interest, penalties, costs and expenses. Notwithstanding the foregoing, for so long as any Bonds remain Outstanding, the County further covenants and agrees that it will not sell a property upon foreclosure (whether in a single sale or a separate sale to foreclose the lien on delinquent Special Taxes) for a price that produces net proceeds less than the amount required to be transferred to the Trustee pursuant to Subsection (b)(ii) above unless such sale is consented to by the Owners of not less than 67% of the aggregate principal amount of Bonds then Outstanding; except that the County may, in its sole discretion, waive penalties and interest in a foreclosure sale if the net proceeds from such sale (excluding penalties and interest) are sufficient to pay the principal of and interest on the portion of the Bonds allocable to the delinquent Special Taxes on the property in question. 41