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The term "owner-operator" refers to an individual or entity that operates a business or property while also owning a significant portion of it. In the context of agriculture in Hawaii, it includes lessee-operators of real property when certain conditions are met. Specifically, this applies when the Secretary determines that the lessee cannot acquire the property outright, provided that adequate security is offered for any loans related to that property, and there is a reasonable chance of meeting the loan's objectives and repayment.
Table of content
Legal Use & context
This term is primarily used in agricultural law and real estate contexts. It may involve various legal documents and procedures, particularly in securing loans or leases for agricultural land. Users can often manage these processes themselves with the right tools, such as legal templates available through US Legal Forms, which are drafted by qualified attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A farmer in Hawaii leases agricultural land but cannot purchase it outright due to state regulations. They operate the farm as an owner-operator, securing a loan using the leased property as collateral.
Example 2: A business owner leases commercial space for their restaurant. They may be classified as an owner-operator if they meet the necessary criteria for securing financing against the lease.
Relevant laws & statutes
According to 7 USCS § 1991, the definition and conditions for owner-operators are outlined, particularly in relation to agricultural credit and administrative provisions in Hawaii. This statute is critical for understanding the legal framework surrounding owner-operators in this context.
State-by-state differences
State
Owner-Operator Definition
Hawaii
Includes lessee-operators under specific conditions related to agricultural loans.
California
Similar definitions apply, but specific state regulations may differ.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Lessee
A person who leases property from another.
Owner-operators have ownership stakes, while lessees do not.
Owner
A person or entity that holds title to a property.
Owner-operators actively manage the property or business.
Common misunderstandings
What to do if this term applies to you
If you believe you qualify as an owner-operator, consider the following steps:
Gather documentation related to your ownership stake and any leases.
Consult with a legal professional to understand your rights and obligations.
Explore US Legal Forms for templates that can assist with loan applications or lease agreements.
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