(a) For a period of six months after appointment of a receiver, a lessor may not terminate any lease of personal or real property to the Hawaii financial institution as long as lease rent for the period following the receivership is paid on a timely basis, whether or not the lease has suffered a prior default.

Terms Used In Hawaii Revised Statutes 412:2-419

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Financial institution: means a Hawaii financial institution, and unless the context indicates otherwise, a federal financial institution or foreign financial institution. See Hawaii Revised Statutes 412:1-109
  • Hawaii financial institution: means :

    (1) A corporation or credit union that holds a charter or license under this chapter or under prior Hawaii law, authorizing it to accept deposits, to make loans in excess of the rates permitted in chapter 478, or to engage in the business of a trust company; or

    (2) A resulting bank as defined in article 12,

    and includes a corporation or credit union existing and chartered as a Hawaii financial institution or licensed to transact business in this State on July 1, 1993. See Hawaii Revised Statutes 412:1-109

  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • Person: means a natural person, entity or organization, including without limitation an individual, corporation, joint venture, partnership, sole proprietorship, association, cooperative, estate, trust, or governmental unit. See Hawaii Revised Statutes 412:1-109
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Receiver: means a person appointed by the commissioner to take possession and control of a Hawaii financial institution for the purpose of liquidating and winding up the affairs of the institution. See Hawaii Revised Statutes 412:1-109
(b) Within six months after initial appointment, the receiver may assume or reject any unexpired lease, and if not assumed within such time the lease shall be deemed to have been rejected; provided, however, that in order to assume any lease:

(1) The unexpired lease term must be at least thirty days at the time of the assumption;
(2) Any prior default must be cured, or the receiver must provide adequate assurance that such default will be promptly cured;
(3) The receiver must provide adequate compensation to any party other than the financial institution for any actual pecuniary loss resulting to such party from such default; and
(4) The receiver must provide adequate assurance to the lessor of future performance under the lease.
(c) The lessor of a lease rejected under this section shall have a claim against the Hawaii financial institution in receivership for damages resulting from the rejection in an amount which may not exceed the unpaid rent owed under the lease, without acceleration, for a six-month period.
(d) Rejection of a lease under this section shall not result in the termination of the lease with respect to the interest of any mortgagee or other person having an interest in the lease other than the Hawaii financial institution.

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