412:2-419 Treatment of lessors. (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.

(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. [L 1993, c 350, pt of 1]


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