{"data":{"id":"us-hi/haw.-rev.-stat.-514e-19","jurisdiction":"us-hi","citation":"Haw. Rev. Stat. § 514E-19","heading":"Protection of purchasers from blanket liens.","body":"(a) An escrow for the sale of a time share interest in a time share ownership plan may close only if the requirements of any one of the following alternatives for protecting the purchaser have been satisfied:\n\n(1) The time share interest is conveyed to the purchaser free and clear of any blanket liens;\n\n(2) The time share unit is conveyed to a trustee:\n\n(A) Free and clear of any blanket liens under a trust meeting the requirements of sections 514E-22 and 514E-23; or\n\n(B) Under a lien payment trust meeting the requirements of sections 514E-22, 514E-23, 514E-24, and 514E-25;\n\n(3) (A) The time share interest is conveyed to the purchaser subject only to blanket liens:\n\n(i) Where every person holding an interest in the blanket lien has executed and recorded a nondisturbance agreement; or\n\n(ii) For which the director's acceptance of a surety bond or an irrevocable letter of credit meeting the requirements of section 514E-28 has been recorded with respect to that time share unit; and\n\n(B) If legal or equitable title will be held by anyone other than the purchaser, a notice of time share plan is recorded; or\n\n(4) The requirements of any alternative arrangements accepted by the director have been met.\n\n(b) An escrow for the sale of a time share interest in a time share use plan may close only if the requirements of any one of the following alternatives for protecting purchasers have been satisfied:\n\n(1) The time share unit is conveyed to a trustee:\n\n(A) Free and clear of any blanket liens under a trust meeting the requirements of sections 514E-22 and 514E-23; or\n\n(B) Under a lien payment trust meeting the requirements of sections 514E-22, 514E-23, 514E-24, and 514E-25;\n\n(2) A notice of time share plan is recorded and either:\n\n(A) Every person holding an interest in a recorded blanket lien against any time share interests in that time share unit executes and records a nondisturbance agreement; or\n\n(B) The director's acceptance of a surety bond or an irrevocable letter of credit meeting the requirements of section 514E-28 is recorded; or\n\n(3) The requirements of any alternative arrangements accepted by the director have been met.\n\n(c) A time share interest in any time share plan which satisfies the escrow and blanket lien protection requirements of this chapter shall not be deemed a risk capital security under chapter 485A, and the offer or sale of a time share interest therein shall not be deemed the offer or sale of a security.","path":["HI Code","Division 3","Title 28","Chapter 514E"],"source_url":"http://www.capitol.hawaii.gov/hrscurrent/Vol12_Ch0501-0588/HRS0514E/HRS_0514E-0019.htm","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:11Z","sha256":"fbb7bb568b1dbbf9b6c15abbfae459ccc84071c1525431b9247c0bd44899f48e","source_id":"us-hi","stale":false,"prev":"us-hi/haw.-rev.-stat.-514e-18","next":"us-hi/haw.-rev.-stat.-514e-2"},"notice":"GroundRules: Original legal text. Not legal advice."}