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COUNTY OF HAWAII <br />STATE OF HAWAII <br />BILL NO. 366 <br />ORDINANCE NO. 08 iS7 <br />AN ORDINANCE AMENDING CHAPTER 2 OF THE HAWAII COUNTY CODE 1983 <br />(2005 EDITION, AS AMENDED), RELATING TO PARITY LIENS. <br />BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: <br />SECTION 1. The purpose of this measure is to clarify treatment of parity liens upon <br />receipt of partial payment by adding this section to article 4 of chapter 2 of the Hawaii County <br />Code 1983 (2005 Edition, as amended). This measure clarifies that should partial payments be <br />made on parity liens that aze billed together, payment toward satisfaction of those liens is to be <br />applied on a pro rata basis, as nearly as practical. Additionally, this measure clarifies that a <br />foreclosure action on one or more pazity liens does not extinguish any remaining unsatisfied <br />parity lien. Specifically, a real property tax foreclosure sale will not extinguish any other type of <br />parity lien notwithstanding section 19-42, Hawaii County Code 1983 (2005 Edition, as <br />amended). <br />SECTION 2. Chapter 2, article 4, of the Hawaii County Code 1983 (2005 Edition, as <br />amended), is amended by adding a new section to be appropriately designated and to read as <br />follows: <br />"Section .Lien parity. <br />{a) Payment on liens that are authorized by this code or by State <br />statute and establish parity as to other liens shall be made as nearly <br />as practical pro rata based on the respective unpaid amounts of all <br />parity liens, including principal, penalty, interest, fees, and costs; <br />provided that payments billed and collected separately with respect <br />to any particular parity lien shall be applied separately to the <br />unpaid amount of such parity lien. <br />