Bill Text: HI SB1290 | 2011 | Regular Session | Amended
Bill Title: Hawaiian Home Lands Lessees; Loans
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2011-06-16 - (S) Act 114, 6/14/2011 (Gov. Msg. No. 1217). [SB1290 Detail]
Download: Hawaii-2011-SB1290-Amended.html
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THE SENATE |
S.B. NO. |
1290 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE HAWAIIAN HOMES COMMISSION ACT, 1920, AS AMENDED.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 214, Hawaiian Homes Commission Act, 1920, as amended, is amended by amending subsection (b) to read as follows:
"(b) In addition the department may:
(1) Use moneys in the Hawaiian home operating fund,
with the prior approval of the governor, to match federal, state, or county
funds available for the same purposes and to that end, enter into [such]
an undertaking, agree to [such] conditions, transfer funds
therein available for [such] expenditure, and do and perform [such]
other acts and things, as may be necessary or required, as a condition to
securing matching funds for [such] the department's projects or
works;
(2) Loan or guarantee the repayment of or otherwise underwrite any authorized loan or portion thereof to lessees in accordance with section 215;
(3) Loan or guarantee the repayment of or otherwise underwrite any authorized loan or portion thereof to a cooperative association in accordance with section 215;
(4) Permit and approve loans made to lessees by
government agencies or private lending institutions, where the department
assures the payment of [such] these loans; provided that upon
receipt of notice of default in the payment of [such] the assured
loans, the department may, upon failure of the lessee to cure the default
within sixty days, cancel the lease and pay the outstanding balance in full or
may permit the new lessee to assume the outstanding debt; and provided further
that the department shall reserve the following rights: the right of
succession to the lessee's interest and assumption of the contract of loan; the
right to require that written notice be given to the department immediately
upon default or delinquency of the lessee; and any other rights enumerated at
the time of assurance necessary to protect the monetary and other interests of
the department;
(5) Secure, pledge, or otherwise guarantee the
repayment of moneys borrowed by the department from government agencies or
private lending institutions and pay the interim interest or advances required
for loans; provided that the State's liability, contingent or otherwise, either
on moneys borrowed by the department or on departmental guarantees of loans
made to lessees under this paragraph and paragraphs (2), (3), and (4) of this
subsection, shall at no time exceed [$50,000,000;] $ ;
the department's guarantee of repayment shall be adequate security for a loan
under any state law prescribing the nature, amount, or form of security or
requiring security upon which loans may be made;
(6) Use available loan fund moneys or other funds
specifically available for [such] guarantee purposes as cash
guarantees when required by lending agencies;
(7) Exercise the functions and reserved rights of a lender of money or mortgagee of residential property in all direct loans made by government agencies or by private lending institutions to lessees the repayment of which is assured by the department. The functions and reserved rights shall include but not be limited to, the purchasing, repurchasing, servicing, selling, foreclosing, buying upon foreclosure, guaranteeing the repayment, or otherwise underwriting, of any loan, the protecting of security interest, and after foreclosures, the repairing, renovating, or modernization and sale of property covered by the loan and mortgage;
(8) Pledge receivables of loan accounts outstanding as collateral to secure loans made by government agencies or private lending institutions to the department, the proceeds of which shall be used by the department to make new loans to lessees or to finance the development of available lands for purposes permitted by this Act; provided that any loan agreement entered into under this paragraph by the department shall include a provision that the money borrowed by the department is not secured directly or indirectly by the full faith and credit or the general credit of the State or by any revenues or taxes of the State other than the receivables specifically pledged to repay the loan; provided further that in making loans or developing available lands out of money borrowed under this paragraph, the department may establish, revise, charge, and collect fees, premiums, and charges as necessary, reasonable, or convenient, to assure repayment of the funds borrowed, and the fees, premiums, and charges shall be deposited into the Hawaiian home trust fund; and provided further that no moneys of the Hawaiian home loan fund may be pledged as security under this paragraph; and
(9) Notwithstanding any other provisions of this Act to the contrary, transfer into the Hawaiian home trust fund any available and unpledged moneys from any loan funds, the Hawaiian loan guarantee fund, or any fund or account succeeding thereto, except the Hawaiian home loan fund, for use as cash guarantees or reserves when required by a federal agency authorized to insure or guarantee loans to lessees."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2050.
Report Title:
Loans made to Hawaiian Home Lands lessees
Description:
Increases the limit the department is currently authorized to borrow or guarantee on loans from $50,000,000 to $ to cover the department's guarantee requirements for its housing program. Effective 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
