HRS §431:6-309
Appraisal and insurance rules for mortgaged property
This section says that when you get a mortgage or buy a contract for a property, the property's value must be set by a qualified appraiser. You must also keep the buildings on the mortgaged property insured against fire for the lender's benefit, for at least the amount you still owe or the property's insurable value, whichever is less. A lender cannot give you a loan secured by one piece of property if the total loan is more than $250,000 or more than what is allowed by another law, whichever is greater.
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The statute, as written — Appraisal; insurance; limit
(a) The fair value of property shall be determined by appraisal by a competent appraiser at the time of the making or acquiring of a mortgage loan or investing in a contract for the deed thereon. (b) Buildings and other improvements located on the mortgaged premises shall be kept insured for the benefit of the mortgagee against loss or damage from fire in an amount not less than the unpaid balance of the obligation, or the insurable value of the property, whichever is the lesser. (c) An insurer shall not make or acquire a loan or loans upon the security of any one parcel of real property in an aggregate amount in excess of $250,000 or more than the amount permissible under section 431:6-105, whichever is the greater.
Sections this one refers to
§431:6-105 Limit on how much an insurer can invest in one borrower
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