Section 15-308-104 - Payment due on sale or(a) The purchaser agrees that upon any sale or transfer, the corporation shall immediately be notified by the owner of the terms and conditions of the sale or transfer. Except for a permitted transfer approved by the corporation, the corporation shall be entitled to be paid its share of the net appreciation on the effective date of the transfer of an amount equal to: Corporation's Percentage Share multiplied by Net Appreciation as determined in section 15-308-103(a).
(b) If the corporation's share is not paid when due, interest on the corporation's share of net appreciation shall accrue at the simple annual rate of twelve per cent per year until paid. The corporation shall also be entitled to be paid the cost of reasonable attorney's fees and costs to enforce the payment of the corporation's percentage share of the net appreciation due.(c) If the corporation's share is not paid when due as a result of a non-occupancy violation: (1) The owner shall provide evidence of the effective date of non-occupancy. In the event sufficient evidence is not provided by the owner, the corporation shall make the final determination of the effective date of non-occupancy.(2) If the owner fails to provide the effective date of non-occupancy, the corporation may commence legal action against the purchaser to pay the shared appreciation equity program amount due.(3) If a sale occurs after the non-occupancy violation, allowable closing cost shall not be allowed as a deduction in determining the corporation's share of net appreciation due.(d) The corporation shall pursue legal action to recover the total amount owed.Haw. Code R. § 15-308-104
[Eff 1/15/2022] (Auth: HRS § 201H-4) (Imp: HRS § 201H-47)