§364-4 Servicing veterans mortgages. All sales of veterans mortgages to the director of finance shall provide for the servicing of each such mortgage by the mortgagee, but the mortgagee shall not be obligated to bear any of the costs of foreclosure.

For servicing the veterans mortgage, the mortgagee shall be entitled to receive from the interest collected on the veterans mortgage a service charge in an amount prescribed by the rules of the director and in addition, the late charges collected, if any. The charge shall be in addition to any charges for originally making the loan and supervising construction permitted by the veterans administrator.

The premises mortgaged under any veterans mortgage shall be located close enough to the principal or branch office of the mortgagee, or a bona fide agent of the mortgagee, adequately to service the mortgage. The mortgagee and the mortgagee's agent shall be equipped so as to facilitate the servicing of veterans mortgages. [L 1953, c 211, §4; RL 1955, §350-4; am L 1961, c 193, §2; HRS §364-4; gen ch 1985]