HRS §514D-15
State owns reserve account money and interest
This section says the State owns all money in reserve accounts set up under this program. The State gets the interest earned on those accounts, and the authority must move that interest into a special state fund. If a participating lender leaves the program with no outstanding loans, the authority must move the whole account balance into that fund too.
financial institutionsstate agencies
The statute, as written — State's rights with respect to reserve account
(a) All of the money in a reserve account established under this part shall be the property of the State. (b) The State shall be entitled to earn interest on the amount of contributions made by the authority, borrower, and participating community development financial institution to a reserve account under this part. On a regular basis, no less than annually, the authority shall withdraw from a reserve account the amount of the interest earned by the State. The authority shall deposit the amount withdrawn under this section into the condominium loan revolving fund. (c) The authority shall withdraw from the participating community development financial institution's reserve account the total amount in the account and any interest earned on the account and deposit the amount into the condominium loan revolving fund when: (1) A participating community development financial institution is no longer eligible to participate in the condominium loan loss reserves program or a participation agreement entered into under this part expires without renewal by the authority or institution; and (2) The participating community development financial institution has no outstanding loans under this part.
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