STAND. COM. REP. NO. 375-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 1753

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 1753 entitled:

"A BILL FOR AN ACT RELATING TO SECURED TRANSACTIONS,"

begs leave to report as follows:

The purpose of this bill is to clarify the procedure for filing a financing statement when a lender takes a security interest in fixtures that are physically located on Land Court registered property, but does not take a mortgage on the Land Court property, by providing that:

(1) When a mortgage serves as a fixture filing or financing statement, the statement is to be filed with the office designated for filing or recording the mortgage (Land Court or the Bureau of Conveyances); and

(2) In all other cases, the documents will be filed with the Bureau of Conveyances.

Your Committee received testimony in support of this bill from a private attorney.

Your Committee finds that the attorney ran into difficulties, when she tried to file a financing statement under the circumstances addressed by the bill. The Uniform Commercial Code of this State requires the statement to be recorded in Land Court. However, applicable Land Court statutes and rules will not allow a financing statement that is not a mortgage to be recorded with the Land Court.

Your Committee finds that it is commendable that she took the time to alert the Committee to the problem and also proposed a solution. Your Committee has adopted her suggestion, but notes that neither the Bureau of Conveyances nor the Land Court testified on this bill.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1753 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,

 

____________________________

KENNETH T. HIRAKI, Chair