HRS §446-4
This law does not stop licensed lenders from paying off your old debts
This section says that the rules in this chapter do not stop banks, credit unions, or other licensed lenders from paying off your existing debts as part of making you a new loan, as long as you ask for it or agree to it.
borrowersfinancial institutions
The statute, as written — Certain loan functions not affected
Nothing in this chapter is intended to exclude, nor shall it exclude, or prohibit, any bank, financial services loan company, credit union, or any other person or firm licensed by the county, state, or federal government to make loans from paying off the existing debts of any debtor to any other person or firm in connection with, or as a condition precedent to, making a loan to such debtor, if done at the debtor's request or with the debtor's consent or agreement.
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