Section 15-305-32 - Withdrawal from participation(a) If, after application for purchase but prior to designation for acquisition, any lessee withdraws the lessee's application, the corporation shall be entitled to deduct the actual pro rata share of tract costs from the initial deposit and additional deposit made pursuant to section 516-33.5, HRS, and section 15-305-11. The executive director shall bill the lessee for any amounts not paid after the deposits have been applied or may take whatever action the executive director deems necessary to collect the costs from the lessee.(b) If, after the designation for acquisition but prior to acquisition of the leased fee interest by the corporation, any lessee who has applied to purchase the leased fee interest in the lessee's residential lot withdraws the application, or fails or refuses to pay such reasonable fees assessed by the executive director for the services of appraisers, title searches, and other tract costs, or otherwise breaches or violates the provision and covenants of the request for designation or of the application to purchase, the corporation, at its option, may cease all efforts to acquire the leased fee interest in that lessee's residential lot and the lessee shall pay to the corporation the lessee's pro rata share of all tract costs incurred in the designation and subsequent efforts to acquire the leased fee interest in the residential lot.(c) Failure by the lessee to close escrow within thirty calendar days after the expiration of the sixty calendar day period set forth in section 516-30, HRS, shall constitute a failure to purchase and the lessee shall be responsible for all costs and fees as set forth in subsection (b).(d) The executive director may take whatever action the executive director deems necessary to collect the costs and fees set forth in this section from the lessee, including the automatic deductions of the costs and fees from the initial deposit and additional deposit made by the lessee in accordance with section 15-305-11.(e) If, after designation or the filing of the condemnation complaint, a lessee withdraws the lessee's lot from the condemnation action or fails to purchase the leased fee interest to the lot, the lessee is liable for the lessee's pro rata share of costs as set forth in sections 516-23 and 516-30, HRS. [Eff JUN 15 2007] (Auth: HRS § 516-7) (Imp: HRS 516-6, 516-7, 516-27, 516-30)