BIL 159 Draft 01 2010-2012 - Laserfiche WebLink

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(2) The loan will be guaranteed by the County of Hawai`i up to the assessed value of the parcel to be connected and any improvements at the time of the loan application; (3) In the event that a guaranteed borrower fails to pay the required payment on the loan within ninety days of the date upon which the payment is due, the loan shall be considered in default and the designated bank shall immediately notify the director of finance of the County of Hawai`i, as well as the guaranteed borrower; (4) In the event of a default of any guaranteed borrower, a designated bank shall accept payment in full from the County of Hawai`i as full satisfaction for the loan; [ate] (5) The loan amount shall be limited to hook up and cost for the reasonable restoration of the parcel and improvements to the condition existing at the time of the loan application plus loan fees and costs; and (d) The director of finance shall inform the mayor and the County council of the names of banks and financial institutions which are designated banks, and shall provide them with copies of the agreement negotiated with the designated banks and the contract which the designated banks will execute with guaranteed borrowers. SECTION 4. Chapter 21, Article 5, Section 21 -40 of the Hawai`i County Code 1983 (2005 edition), is amended to read as follows: Section 21 -40. Loan application. (a) Any owner who is required to connect such owner's property to a sewer pursuant to section 21 -5, and who has been rejected by any two banks or financial institutions for any type of [a] loan to pay for the sewer connection, based on insufficient ability to repay said loan, may apply to a designated bank for a sewer connection loan which is guaranteed by the County of Hawai`i. Any application for a guaranteed loan must be submitted to a designated bank no more than [forty] sixty calendar days after the date of the notification by the director requiring the owner to connect to the sewer. (b) All such timely applications for guaranteed loans shall be sent by any receiving designated bank to the director of finance. Any owner whose application for a sewer connection loan is referred to the director of finance by a designated bank and is deemed to have a reasonable ability to repay the loan may participate in a loan guaranteed by the County of Hawai`i and become a guaranteed borrower. As conditions of participation, the applicant shall execute: (1) A loan agreement with a designated bank, with the County of Hawai`i as guarantor of the loan, providing that: (A) The money will be paid by the bank directly to the contractor performing the connection; and (B) In the event the guaranteed borrower fails to pay the required payment on the loan within ninety days of the date upon which 3