Every borrower who is granted a loan under this chapter shall comply with the following conditions:

(1) Expend no portion of the borrower’s loan for purposes other than those sanctioned by the department of agriculture;
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Terms Used In Hawaii Revised Statutes 155-12

  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage: includes classes of liens on farm land and other authorized security as are approved by the department of agriculture and the credit instruments secured thereby. See Hawaii Revised Statutes 155-1
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
(2) Carry out recommended management practices, including the keeping of proper records;
(3) Not sell or otherwise dispose of the mortgaged property except on written consent of the lender, and except upon conditions as may be prescribed in writing by the lender;
(4) Undertake to pay, when due, all taxes, liens, judgments, or assessments that may be lawfully assessed against the property mortgaged, together with the costs and expense of any foreclosure of the mortgage;
(5) Keep insured to the satisfaction of the department all buildings and other insurable property covered by the mortgage. Insurance shall be made payable to the mortgagee as its interests may appear at the time of the loss. At the option of the lender, and subject to the general regulations of the department, sums so received may be used to pay for reconstruction of the buildings destroyed, or for decreasing the amount of the indebtedness;
(6) Keep buildings in good repair; provide proper care for improvements, stock, and implements; keep land free from noxious weeds; and practice good systems of husbandry;
(7) All of the above conditions shall be held and construed to be a provision of any mortgage executed by virtue of this chapter whether appearing as a provision of the mortgage or not; and
(8) If the borrower is in default in respect to the above conditions, or any other conditions, or any other condition or covenant of the mortgage, the whole of the loan shall, at the option of the lender become due and payable forthwith. The lender may, with or without notice, take possession of the mortgaged property pending a foreclosure and may carry on the business pursuits upon the mortgaged premises, expending all reasonable sums therefor. The sums shall be a lien on the mortgaged premises and be recoverable in any foreclosure proceedings or otherwise. The lender may foreclose the mortgage by any method provided for by law.

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