Section 6-27-5 - Purpose of loanMember home loans shall be made for the following verified purposes only:
(1) To purchase, construct, or improve a principal home;(2) To satisfy an outstanding agreement of sale to buy a principal home;(3) To convert a construction loan not made under the program for the construction of a principal home or home improvement loan to a permanent member home loan;(4) To purchase the fee simple interest in a principal home situated on leasehold land;(5) To refinance an existing first mortgage loan which was not made under the program;(6) To refinance an existing member home loan if the purpose is to finance proposed or prospective home improvements amounting to at least the minimum loan amount set by the board of trustees or to purchase the leasehold property in fee;(7) To refinance an existing second mortgage loan not made under the program and convert it to a first mortgage member home loan if the second mortgage loan was made for the purpose of: (A) Making the down payment for the subject property;(B) Purchasing leasehold property in fee; or(C) Making home improvements;(8) To purchase the fee simple interest where there is an existing first leasehold mortgage loan;(9) To satisfy an agreement of sale for the purchase of the fee simple interest where there is an existing first leasehold mortgage loan; or(10) To refinance a loan made for the purchase of the fee simple interest where there is an existing first leasehold mortgage loan. Cash take out shall not be permitted under the member home loan program.
[Eff 2/9/89; am 12/24/90; am 6/11/92] (Auth: HRS §§ 88-28, 88-119.5) (Imp: HRS §§ 88-119, 88-119.5)