SB1366 regulates handling of insurance proceeds for mortgage loans in Hawaii.

SB1366 mandates that Hawaii financial institutions must disburse insurance proceeds to borrowers if the proceeds exceed the mortgage balance. If the proceeds are insufficient to cover the balance, they must be placed in an escrow account. The financial institution must hold these proceeds in an interest-bearing account, earning interest at a rate not less than the national rate for money market accounts.

SB1366 regulates handling of insurance proceeds for mortgage loans in Hawaii.

SB1366 mandates that Hawaii financial institutions must disburse insurance proceeds to borrowers if the proceeds exceed the mortgage balance. If the proceeds are insufficient to cover the balance, they must be placed in an escrow account. The financial institution must hold these proceeds in an interest-bearing account, earning interest at a rate not less than the national rate for money market accounts.