HI SB396

Amends Hawaii Revised Statutes Section 506-8 to require mortgagees to provide reassignment or release of security interests in leases and rents when underlying debt is fully satisfied, in addition to releasing the mortgage itself.

Establishes a 60-day timeline for mortgagees to provide the required release or reassignment after written request by certified or registered mail; failure to comply triggers alternative procedures.

Authorizes title insurers or underwritten title companies to execute releases or reassignments on behalf of non-responsive mortgagees if they provide affidavit proof that the debt has been discharged.

Allows mortgagors, title insurance companies, escrow companies, or other interested parties to file court action to obtain releases or reassignments if the mortgagee fails to respond within 60 days; court may issue an order upon satisfactory proof of payment.

Provides for treble damages and reasonable attorneys' fees against title insurers or mortgagees who act with gross negligence or bad faith in releasing security interests, or against mortgagees who improperly withhold releases.

Effective July 1, 2017.