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Home My WebLink AboutRES 792 Draft 01 1980-1984..~, .:1, ~J ~f COUNTY OF HAWAII - STATE OF HAWAII RESOLUTION NO. '~92 ~'~ (AMENDED) WHEREAS, the County of Hawaii has redeemed all Improvement District bonds for Improvement District No. 11, Discovery Harbor and Adjacent Lands; and WHEREAS, the owners of certain lots within said Improvement District have not paid all of the Improvement District installments which have accrued for their lots; and WHEREAS, the collection of all outstanding assessment delinquencies through the tenth installment, combined with the cash in said Improvement District will exceed the amount of cash needed to pay all reasonably anticipated expenses of the r Improvement District by more than $168,700; and WHEREAS, the County wishes to induce the prompt payment of outstanding assessment delinquencies to enable it to refund monies to other lot owners and to expenditiously terminate the affairs of this Improvement District; and WHEREAS, the total accrued penalty from March 3, 1982, to November 1, 1983, was approximately $318,100; and WHEREAS, various holders of penalty waiver credit from the penalty waiver created by Resolution 327-82 hold unexpended penalty waiver credits in the total amount of approximately $115,700 and it is anticipated that other persons will hold similar credits by reason of the penalty waiver being created by this Resolution, and the County wishes to provide for these holders benefits comparable to those holders who were able to apply their penalty waiver credits; -1- NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII as follows: rj 1. A penalty waiver for penalty accrued in Improvement District No. 11 during the period March 3, 1982, through November 1, 1983, is authorized under the terms and conditions specified below. 2. Penalty Waiver Credit. The penalty waiver shall be in the form of a penalty waiver credit. 3. Time When Credit is Allowed. a. Lots with Delinquent Assessment Installment For those lots with delinquencies in assessment installments, the penalty waiver credit shall be allowed for each such lot upon payment of the amount equal to the delinquent assessment installments less the penalty waiver credit. b. Lots Current in Assessment Installment. For those lots current in assessment installments, a cash refund may be available as provided below. 4. Application of Penalty Waiver Credit. a. Subject to the limitations set forth below, the penalty waiver credit allowed for each lot shall be applied in the following order until depleted: (1) First to reduce the total penalty outstanding on the lot against which the penalty was imposed. (2) Then to reduce the amount of delinquent principal and interest against such lot. (3) Then, if directed by the holder of the penalty waiver credit, to reduce the outstanding delinquent assessment on any other lot in said Improvement District in the same priority as (1) and (2) above. -2- . e.. O O b. For purposes of "a" above, "the holder of the penalty waiver credit" is the owner of the lot to which the penalty waiver credit is to be applied, unless in the deed conveying a lot or by contract or otherwise the grantor or any other person reserved the rights to any penalty waiver, in which event such grantor or person shall be "the holder of the penalty waiver credit" for such lot upon proof by such grantor or person of such reservation of the penalty waiver rights. c. The penalty waiver credit shall not be applied to reduce foreclosure sale expenses or collection charges included in the assessment installments. 5. Computation of Penalty Waiver Credit. The penalty waiver credit shall be 50$ of the "total penalty accrued" in Improvement District No. 11 from March 3, 1982, to November 1, 1983; "Total penalty accrued" shall include all penalty accrued during that period, whether or not said penalty has been paid, and without respect to whether the installment assessments for the affected lot have been paid. 6. Cash Refunds for 1982 Penalty Waiver Credits. After the Finance Director has sufficient available cash to assure the refunds for prepaid assessments and 11th Installment assessments as described in Ordinance No. 83-43, there shall be cash refunds to the holders of unapplied penalty waiver credit from the 1982 penalty waiver; for purposes of this paragraph, "unapplied penalty waiver credit" shall mean that amount of penalty waiver credit which has not been applied as provided in Resolution 327-82 and which is attributable to payment of penalty on a lot which is presently current in its -3- 0 0 cash refunds shall be made to the holders of the credits under the following terms and conditions: a. Said refunds shall be made on an "available cash" basis; for purposes of this paragraph "available cash" shall be that amount of cash which is available and not needed for purposes of bond redemption or to pay the accrued or reasonably anticipated expenses of the Improvement District. b. For purposes of payment of this cash refund to a particular lot, the payment shall be based upon the following formula: Available Cash On Unapplied 1982 Paid Refund For Total Unapplied X Penalty Waiver = Lot; 1982 Paid Penalty Credit For the Lot Waiver Credit the Total Unapplied 1982 Paid Penalty Waiver shall be determined by the Finance Director prior to the initial refund; said amount shall thereafter be adjusted as necessary for any application made of such penalty waiver credit; the total refunds thus made shall not exceed the Total Unapplied 1982 Paid Penalty Waiver Credit, nor shall the total refunds for a particular lot exceed the amount of the Unapplied 1982 Paid Penalty Waiver Credit for the lot. c. The Finance Director shall make such cash refunds in such amounts and at such times as he finds are reasonable; provided, that such cash refunds shall be consistent with the foregoing provisions of this paragraph. 7. Cash Refunds for Current Penalty Waiver Credit. After the Finance Director has sufficient available cash to assure the refund described in paragraph 6 above, there shall be cash -4- .~ o 0 refunds in the total amount equal to the unapplied penalty waiver credit to the holders of said unapplied penalty waiver credit created by this Resolution; for purposes of this paragraph, "unapplied penalty waiver credit" shall mean that amount of penalty waiver credit which has not been applied as provided in Paragraph 4 above and which is attributable to payment of penalty on a lot which is presently current in its assessment installment; said cash refunds shall be made to the holders of such unapplied penalty waiver credits under the following terms and conditions: a. The total amount of refund shall be that amount which the Finance Director shall hereafter determine is "unapplied penalty waiver credit" as defined in this paragraph 7. b. Said refunds shall be made on an "available cash" basis; for purposes of this paragraph "available cash" shall be that amount of cash which is available and not needed for purposes of bond redemption or to pay the accrued or reasonably anticipated expenses of the Improvement District. c. For purposes of payment of this cash refund to a particular lot, the payment shall be based upon the following formula: Available cash Unapplied Second Penalty Refund for Total Unapplied X Waiver Credit = Lot; Second Penalty for the Lot Waiver Credit the total refunds thus made shall not exceed the Total Unapplied Second Penalty Waiver Credit, nor shall the total refunds for a particular lot exceed the amount of unapplied penalty waiver credit (as defined in this Paragraph) for that particular lot. -5- .i: - . o 0 d. The Finance Director shall make such cash refunds in such amounts and at such times as he finds are reasonable; provided, that such cash refunds shall be consistent with the foregoing pro- visions of this Paragraph. 8. Refund' Procedures and Lapse of Unclaimed Refund Amounts. The Finance Director shall mail a notice of eligibility for refund to the appropriate parties or shall otherwise notify such persons of the refunds. The Finance Director may establish such procedures for refund of monies as provided herein as he finds necessary and may require of any persons claiming refunds that they present such information as he finds necessary to establish. their entitlement to such refunds. If refund amounts are unclaimed or if satisfactory information to establish entitlement to refund is not provided within two years of the time that notice is first given that the refund is available, then such refund amounts shall be treated as funds surplus to the Improvement District and shall be disposed of in the manner set forth in Chapter /16%, 12 Hawaii. County Code. 9. Effective Date. This provision of this Resolution shall be effective upon its passage and upon the occurrence of the conditions contained herein. Dated at Hilo, Hawaii, this Tst day of " 'February , 1984. INTP.ODUCED BY: COUNTY COUNCIL County of Hawaii Hilo, Hawaii ~.p '~"'i-~.~..iiJ COUNCIL MEMBER, COUN OF HAWAII ROLL CALL VOTE I hereby certify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUNCIL of the County of Hawaii on ° February 1, 1984 ATTEST: ~. ~~ ~~i COUNTY CLE K HAIRMAN & R IDING OFFICER De Luz, III X Domingo X Fulii X Hale X Kawahara X Lai X Schulte X Chr. Yamashiro X Reference: M.B. No. 792-8 A RESOLUTION NQ