Foreclosure complaint names Fong, park firm
By Curtis Lum
Advertiser Staff Writer
Bank of Hawaii yesterday filed a foreclosure complaint against former U.S. Sen. Hiram Fong and his visitor attraction in Kahalu'u, claiming that the company has defaulted on a $1 million loan.
The complaint, filed in Circuit Court, alleges that the company and its officers "failed, neglected and refused to pay" the $698,867 balance on the note.
Named as defendants are Fong; his wife, Ellyn; son, Hiram Jr.; daughter, Merie-Ellen Fong Gushi; and Senator Hiram Fong's Plantation & Gardens Inc., the company that operates the park.
None of the Fongs could be reached for comment yesterday.
Hiram Sr. and Ellyn Fong obtained the loan in 1987 from Bank of Hawaii and purchased land in Kahalu'u to operate the Plantation & Gardens park, according to the complaint. A year later, the property was transferred to the corporation and the Fongs guaranteed the loan.
On Nov. 1, 1996, Bank of Hawaii and the Fongs agreed to modify the loan agreement and extend the term for three years.
At that time, the complaint stated, the balance on the mortgage was $880,202.
The loan was modified three more times, with the final agreement calling for the Plantation & Gardens corporation to pay the balance of the note by Feb. 15, 2002.
But as of Aug. 31, the complaint said, the Fongs and the Plantation & Gardens corporation had failed to fulfill their obligations.
The bank alleges that the Fongs owe $698,867 plus $184.42 interest daily, according to the complaint.
Fong served in the territorial Legislature for 14 years and in 1959 he was elected to the U.S. Senate. Fong, the first Asian American to serve in the Senate, retired in 1977.
In 1950, he purchased a small plot of land in Kahalu'u for his children's horses. Fong eventually expanded the property to 725 acres and opened the Plantation & Gardens.
The Plantation & Gardens property functions as a bird sanctuary and nature preserve, with rare species of plants and exotic fruits. A fee is charged to park visitors, who tour the property on a tram.
Reach Cutis Lum at culum@honoluluadvertiser.com or 525-8025.
