2015 Hawaii Revised Statutes
TITLE 28. PROPERTY
514A. Condominium Property Regimes
514A-67 Financing construction.
§514A-67 Financing construction. Should the apartments be conveyed or leased prior to the completion of construction of the building or buildings for the purpose of financing such construction, all moneys from the sale of such apartments, including any payments made on loan commitments from lending institutions, shall be deposited by the developer in a trust fund with a bank, savings and loan association, or trust company authorized to do business in the State under an escrow arrangement. Disbursements from such fund may be made, from time to time, to pay for construction costs of the building or buildings in proportion to the valuation of the work completed by the contractor as certified by a registered architect or professional engineer, and for architectural, engineering, finance, and legal fees and for other incidental expenses of the condominium project as approved by the mortgagee. The balance of the moneys remaining in the trust fund shall be disbursed only upon completion of the building or buildings, free and clear of all mechanic's and materialman's liens. The real estate commission may impose other restrictions relative to the retention and disbursement of the trust fund. [L 1977, c 98, pt of §2]
Law Journals and Reviews
Protecting the Deposit of the "Consumer" Who Purchases a New Condominium Apartment. 8 HBJ 103.
Case Notes
Rights of purchasers and subsequent mortgagee. 50 H. 540, 445 P.2d 109.
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