ORD 2012-158 2010-2012 - Laserfiche WebLink

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COUNTY OF HAWAII STATE OF HAWAII BILL NO. 312 ORDINANCE NO. 1-2 158 AN ORDINANCE AMENDING CHAPTER 21, ARTICLE 5, OF THE HAWAII COUNTY CODE 1983 (2005 EDITION), RELATING TO SEWER CONNECTION LOAN PROGRAM. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. The purpose of this measure is to update and amend Article 5 relating to the Sewer Connection Loan Program. SECTION 2. Chapter 21, Article 5, Section 21 -40, 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 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 [sixty] one hundred and twenty 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 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 Hawaii a lien on the property to be connected. The County of Hawai`i may 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. 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."