Requires that in counties with a population of less than 200,000, the public notice of foreclosure on a mortgaged property located in the county shall be published at least three times, two of which must be in a newspaper published in and having the largest circulation in the county (HB1796 HD1).

A BILL FOR AN ACT

SECTION 1. The legislature finds that providing adequate legal notice of the foreclosure of a mortgaged property is problematic in smaller counties. Although the law requires notice in a newspaper of general circulation, not all residents of smaller counties subscribe to statewide-circulated newspapers.

The purpose of this Act is to require that in counties having a population of two hundred thousand or less, the notice of foreclosure of a mortgaged property is to be published in a newspaper that:

(1) Is published in the county; and

SECTION 2. Section 667-5, Hawaii Revised Statutes, is amended to read as follows:

"§667-5 Foreclosure under power of sale; notice; affidavit after sale. When a power of sale is contained in a mortgage, the mortgagee, [or] the mortgagee's successor in interest, or any person authorized by the power to act in the premises, may, upon a breach of the condition, give notice in the county where the mortgaged property is located, of the mortgagee's, successor's, or person's intention to foreclose the mortgage and of the sale of the mortgaged property[, by publication of the notice].

(b) For counties with a population of two hundred thousand or greater, the notice shall be published once in each of three successive weeks (three publications), the last publication to be not less than fourteen days before the day of sale, in a newspaper having a general circulation in the county [in which] where the mortgaged property [lies; and] is located. The authorized person shall also give [such] notices and do [all such] other acts as are authorized or required by the power contained in the mortgage. Copies of the notice shall be filed with the state director of taxation and shall be posted on the premises not less than twenty-one days before the day of sale.

(c) For counties with a population of less than two hundred thousand, the notice shall be published once in each of three successive weeks (three publications), of which the last publication shall be not less than fourteen days before the day of sale. At least two of the notices shall be published in a newspaper that:

(1) Is published in the county; and

(d) Any sale, of which notice has been given [as aforesaid,] pursuant to this section, may be postponed from time to time by public announcement made by the mortgagee or by some person acting on the mortgagee's behalf. The mortgagee [shall], within thirty days after selling the property in pursuance of the power, shall file a copy of the notice of sale and the mortgagee's affidavit, setting forth the mortgagee's acts in the premises fully and particularly, in the bureau of conveyances.

(e) The affidavit and copy of the notice shall be recorded and indexed by the registrar, in the manner provided in chapter 501 or 502, as the case may be.

(f) This section is inapplicable if the mortgagee is foreclosing as to personal property only."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.