What happens when a loan backed by the county goes into default

In the event of a default, after the County of Hawai‘i has paid the designated bank or financial institution, the director of finance shall have the discretion to negotiate with the guaranteed borrower a plan for repayment of the loan to the County of Hawai‘i. In negotiating the loan repayment, the director of finance shall take into consideration the following guidelines: (a) In the event that the guaranteed borrower is capable of paying the monthly interest on the loan, the repayment plan shall include a minimum monthly payment at least equal to the amount of monthly interest, and at the same rate of interest charged by the designated bank. (b) In the event that the guaranteed borrower is unable to pay an amount equal to the monthly interest, the director of finance may negotiate a smaller monthly payment. (c) If no agreement on the plan for repayment is reached within ninety days of default, the County of Hawai‘i shall immediately initiate foreclosure proceedings against the subject property. (d) In the event that the guaranteed borrower is a corporation or is an owner holding property in a trust, then the County of Hawai‘i may initiate foreclosure proceedings immediately upon default by the owner and payment of the loan by the County of Hawai‘i. (1992, ord 92-136, sec 1; am 2012, ord 12-15, sec 5.)21-41