What is the statutory usury ceiling on second mortgages secured by real estate in Hawaii, when carried by private individuals?

In Hawaii, the statutory usury ceiling for second mortgages secured by real estate when carried by private individuals is capped at 12 percent. This limitation reflects the intention of the law to protect borrowers from excessively high-interest rates charged by private lenders. The usury statute prevents lenders from imposing interest rates that could be deemed exploitative, thereby helping to maintain a fair lending environment in the state.

Understanding this ceiling is important for both lenders and borrowers in the mortgage lending process, ensuring compliance with state laws regarding interest rates. A higher rate than this could lead to legal challenges and potential penalties for the lender.

The options regarding higher percentages or no ceiling at all are not applicable in this context, as they do not align with the established statutory limits for second mortgages in Hawaii.