BIL 159 Draft 01 2010-2012 - Laserfiche WebLink

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payment is due, the loan shall be considered in default and the County of Hawai`i will repay the loan in full to the designated bank, and will assume the designated bank's status as creditor. (2) An agreement with the County of Hawai`i giving the County of Hawai`i a lien on the property to be connected. [In situations in which the guaranteed borrower is a corporation or an owner holding property in a trust other than a self directed revocable living trust, the] The County of Hawai`i may [shall] initiate foreclosure proceedings immediately upon default by the owner and any non - payment of a payment required by a payment plan under section 21 -41. [by the County of Hawai`i. In situations in which the other situations, upon the death of the guaranteed borrower, or the sale, exchange, transfer or forced sale of the property, or the death of the last surviving settlor of a self directed revocable living trust, foreclosure action to the County of Hawai`i.] Upon execution, the loan agreement and the lien document shall be recorded at the bureau of conveyances. (c) For the protection of the interest of the County of Hawai`i, a title search for any property upon which the County of Hawai`i will have a lien shall be conducted prior to execution of any agreements, and the cost of the search shall be paid from the loan proceeds. SECTION 5. Chapter 21, Article 5, Section 21 -41 of the Hawai`i County Code 1983 (2005 edition), is amended to read as follows: Section 21 -41. Default procedure. In the event of a default, after the County of Hawai`i has paid the designated bank or financial institution, the director of finance shall have the discretion to negotiate with the guaranteed borrower a plan for repayment of the loan to the County of Hawai`i. In negotiating the loan repayment, the director of finance shall take into consideration the following guidelines: (a) In the event that the guaranteed borrower is capable of paying the monthly interest on the loan, the repayment plan shall include a minimum monthly payment at least equal to the amount of monthly interest, and at the same rate of interest charged by the designated bank. (b) In the event that the guaranteed borrower is unable to pay an amount equal to the monthly interest, the director of finance may negotiate a smaller monthly payment [than the amount equal to the monthly interest, provided that in every case the guaranteed borrower in default shall pay no less than $1 per month]. (c) If no agreement on the plan for repayment is reached within ninety days of default, the County of Hawai'i shall immediately initiate foreclosure proceedings against the subject property. 4