BIL 366 Draft 02 2006-2008 - Laserfiche WebLink

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COUNTY OF HAWAII ORDINANCE NO. STATE OF HAWAII BIl_,I, NO. 366 AN ORDINANCE AMENDING CHAPTER 2 OF THE HAWAII COUNTY CODE 1983 (2005 EDITION, AS AMENDED), RELATING TO PARITY LIENS. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. The purpose of this measure is to clarify treatment of pazity liens upon receipt of partial payment by adding this section to article 4 of chapter 2 of the Hawaii County Code 1983 (2005 Edition, as amended). This measure clazifies that should partial payments be made on parity liens that are billed together, payment toward satisfaction of those liens is to be applied on a pro rata basis, as neazly as practical. Additionally, this measure clarifies that a foreclosure action on one or more pazity liens does not extinguish any remaining unsatisfied parity lien. Specifically, a real property tax foreclosure sale will not extinguish any other type of pazity lien notwithstanding section 19-42, Hawaii County Code 1983 (2005 Edition, as amended). SECTION 2. Chapter 2, article 4, of the Hawaii County Code 1983 (2005 Edition, as amended), is amended by adding a new section to be appropriately designated and to read as follows: "Section .Lien parity. ~ Payment on liens that are authorized by this code or by State statute and establish parity as to other liens shall be made as nearly as practical pro rata based on the respective unpaid amounts of all parity liens, including principal, penalty, interest, fees, and costs; provided that payments billed and collected separately with respect to any particular parity lien shall be applied sepazately to the unpaid amount of such parity lien.