CONFERENCE COMMITTEE REP. NO.73

Honolulu, Hawaii

, 2005

RE: H.B. No. 785

H.D. 1

S.D. 1

C.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 785, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MORTGAGE FORECLOSURES,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to expressly provide for non-judicial foreclosure of time share interests under the power of sale. The provisions of this bill are based on the existing power of sale law, and as such they:

    1. Allow a mortgagee to foreclose under the power of sale by giving notice of the intention to foreclose the mortgage;
    2. Require that copies of the notice be filed with the state Director of Taxation and posted on the time share interest premises not less than 21 days before the day of sale;
    3. Provide that the day of sale may be any time after four weeks from the date of publication of the first notice;
    4. Require the mortgagee to file a copy of the notice of sale and the mortgagee’s affidavit in the Bureau of Conveyances within 30 days after selling the time share interest; and

(5) Allow a mortgage creditor having a lien on a time share interest to request and receive written notice of foreclosure from another mortgage creditor with a lien on the same interest, at least seven days before the mortgage creditor forecloses on the mortgage by power of sale.

The bill also improves the notice given to time share mortgage debtors. In addition to publication of the notice of foreclosure in a newspaper in the county where the time share interest is located, the mortgage creditor must also provide the mortgagor with notice of foreclosure by:

(1) Certified mail, return receipt requested, when the mortgagor's last known address is within the United States; or

(2) Mail, when the mortgagor's last known address is outside the United States.

Your Committee on Conference finds that foreclosure under the power of sale provides time share associations and time share lenders a practical alternative to pursuing judicial foreclosure of a time share interest, the cost of which frequently exceeds the amount recovered. Further, the additional notice that this bill requires will protect the many time share mortgage debtors who do not live in the county where the time share interest is located.

Your Committee on Conference has amended this bill by making technical, nonsubstantive amendments for clarity and style.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 785, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 785, H.D. 1, S.D. 1, C.D. 1.

 

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________

RON MENOR, Chair

____________________________

KENNETH HIRAKI, Chair