REPORT TITLE:
Breaches/Defaults Public Land


DESCRIPTION:
Provides lease management flexibility to the Board of Land and
Natural Resources when it handles breaches of land leases or rent
defaults.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1109
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO NOTICE OF BREACH OR DEFAULT.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 171-20, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "�171-20  Notice of breach or default.  Except as otherwise
 
 4 specifically provided in this chapter, in the event of a breach
 
 5 or default of any term, covenant, restriction, or condition of
 
 6 any lease or patent heretofore or hereafter issued under this
 
 7 chapter, the board of land and natural resources shall [deliver
 
 8 a] give written notice of the breach or default by [personal
 
 9 service] delivery or by registered or certified mail to the party
 
10 in default and to each holder of record having any security
 
11 interest in the land covered by or subject to the lease or patent
 
12 making demand upon the party to cure or remedy the breach or
 
13 default within [sixty] thirty days from the date of receipt of
 
14 the notice; provided that where the breach involves a failure to
 
15 make timely rental payments pursuant to the lease or patent
 
16 heretofore or hereafter issued under this chapter, the written
 
17 notice shall include a demand upon the party to cure the breach
 
18 within [less than sixty days, but not less than five business
 
19 days, after the receipt of the notice.] a period to be determined
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 by the board; provided further that where the breach or default
 
 2 involves other than a failure to make timely rental payments, to
 
 3 the extent that the breach or default cannot be cured within
 
 4 thirty days, a party required to cure a breach or default who has
 
 5 diligently commenced and pursued the cure of the breach or
 
 6 default within the thirty-day period shall have such additional
 
 7 time as the board of land and natural resources, in its sole
 
 8 discretion, determines to be required to complete the cure of the
 
 9 breach or default.  Upon failure of the party to cure or remedy
 
10 the breach or default within the time period provided herein or
 
11 within such additional period as the board may allow for good
 
12 cause, the board may, subject to section 171-21 exercise such
 
13 rights as it may have at law or as set forth in the lease or
 
14 patent.  Nothing contained herein shall prevent the board of land
 
15 and natural resources and any party from agreeing to allow
 
16 notices under this section to be provided by facsimile or other
 
17 commercially accepted means of giving notice."
 
18      SECTION 2.  This Act does not affect rights and duties that
 
19 mature, penalties that were incurred, and proceedings that were
 
20 begun, before its effective date.
 
21      SECTION 3.  Statutory material is to be repealed is
 
22 bracketed.  New statutory material is underscored.
 
23      SECTION 4.  This Act shall take effect upon its approval.