HomeMy WebLinkAboutBIL 366 Draft 02 2006-2008COUNTY 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.
In the event of delinquencies, parity liens may be foreclosed
together or in separate foreclosures and the amounts realized by
foreclosure, toeether or separately, as applicable, shall be applied
in the manner provided above for payments billed and collected
toeether or separately.
~ Notwithstanding any provision of this code to the contrary,
foreclosure of any parity lien or liens shall not extinguish or
otherwise affect any parity lien or liens for amounts that are not
satisfied by such foreclosure."
SECTION 3. Material to be repealed is bracketed and stricken. New material is
underscored. In printing this ordinance, the brackets, bracketed and stricken material and
underscoring need not be included.
SECTION 4. Severability. If any provision of this ordinance or the application
thereof to any person or circumstance, is held invalid, such invalidity shall not affect
other provisions or applications of the ordinance which can be given effect without the
invalid provision or application, and to this end, the provisions of this ordinance are
declared to be severable.
SECTION 5. This ordinance shall take effect upon its approval.
IN RODUCED BY:
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COUNCIL MEM E Y OF HAWAII
Hawaii
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
REFERENCE, Comm. 1453.2
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