REPORT TITLE:



DESCRIPTION:


 
a                                                      ATG-7(99)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1109
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   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[.]; provided further that
 

 
a                                                      ATG-7(99)
Page 2                                                     1109
                                     S.B. NO.           
                                                        
                                                        

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  Statutory material is to be repealed is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

 
a                                                      ATG-7(99)
Page 3                                                     1109
                                     S.B. NO.           
                                                        
                                                        

 
 1 
 
 2                           INTRODUCED BY:  _______________________
 

 
a                                                      ATG-7(99)