Hawaii Administrative Rules › Title 4 - DEPARTMENT OF AGRICULTURE › Subtitle 8 - DIVISION OF AGRICULTURAL RESOURCE MANAGEMENT › Chapter 158 - NON-AGRICULTURAL PARK LANDS PROGRAM RULES › Subchapter 5 - MANAGEMENT OF NON-AGRICULTURAL PARK LANDS › Section 4-158-34 - Rights of holder of security interest

Current through June, 2024
(a) Whenever any
				  notice of breach or default is given to any party under section 4-158-33 or
				  under the terms of any lease, license, agreement, or other instrument issued or
				  to be issued under this chapter, a copy of the notice shall be delivered by the
				  department to all holders of record of any security interest in the land or
				  interest covered by the lease, license, agreement, or other instrument whose
				  security interest has been recorded with the department. Should the board seek
				  to forfeit the privilege, interest, or estate created by the lease, license,
				  agreement, or other instrument, each holder may, at its option, cure or remedy
				  the breach or default, if the same can be cured or remedied, by the payment of
				  money or, if such is not the case, by performing or undertaking in writing to
				  perform all the terms, covenants, restrictions, or conditions of any lease,
				  license, agreement, or other instrument capable of performance by the holder,
				  as determined by the board, within the time period provided in section 4-158-33
				  or within such additional period as the board may allow for good cause and add
				  the cost thereof to the mortgage debt and the lien of the mortgage. Upon
				  failure of the holder to exercise its option, the board may:
(1) Pay to the holder from any moneys at its
				  disposal, including the special fund, which is made available for that purpose,
				  the amount of the mortgage debt, together with interest and penalties, and
				  secure an assignment of the debt and mortgage from the holder, or if ownership
				  of the interest or estate shall then have vested in the holder by way of
				  foreclosure or action in lieu thereof the board shall be entitled to a
				  conveyance of the interest or estate upon payment to the holder of the amount
				  of the mortgage debt, including interest and penalties, and all reasonable
				  expenses incurred by the holder in connection with the foreclosure and
				  preservation of its security interest, less appropriate credits, including
				  income received from the privilege, interest, or estate subsequent to the
				  foreclosure; or
(2) If the property
				  cannot be reasonably reassigned without loss to the department then terminate
				  the outstanding privilege, interest, or estate without prejudice to any other
				  right or remedy for arrears of rent or for any preceding or other breach or
				  default, and use its best efforts to redispose of the affected land to a
				  qualified and responsible applicant free and clear of the mortgage and the debt
				  thereby secured; provided that a reasonable delay by the board in instituting
				  or prosecuting any right or remedy it may have under this section shall not
				  operate as a waiver of the right or to deprive it of the remedy when it may
				  still resolve the violation created by the breach or default
				  involved.