In Hawaii, an Assignment of Note and Deed of Trust as Security for Debt of Third Party is a legal document used to transfer the rights and interests in a promissory note and associated deed of trust from one party to another as collateral for a debt owed by a third party. This type of arrangement commonly arises when a borrower defaults on a loan or fails to meet their financial obligations. The Assignment of Note and Deed of Trust serves as a means for the lender to protect their interests and recover their debt by allowing them to assign or transfer the promissory note and deed of trust to another entity, usually a third-party collection agency or investor. This transfer grants the assignee the power to collect the outstanding debt and potentially foreclose on the property secured by the deed of trust if necessary. It's important to note that there are different types of Hawaii Assignment of Note and Deed of Trust as Security for Debt of Third Party depending on the circumstances and parties involved. One common type is the voluntary assignment, where the original lender voluntarily assigns their rights and interests in the note and deed of trust to another party. This may occur when the original lender wants to transfer the debt to a collection agency or investor for various reasons, such as reducing their own financial risk or focusing on other lending opportunities. On the other hand, an involuntary assignment may take place when the borrower defaults on their loan, prompting the lender to assign the note and deed of trust to a third party for debt collection purposes. In this case, the borrower may no longer have control over whom the assignment is made to. Moreover, there can also be assignments arising from mortgage-backed securities transactions, where loans are packaged together and sold to investors on the secondary market. These assignments involve the transfer of multiple notes and deeds of trust to a trustee or custodian responsible for managing the pool of loans on behalf of the investors. In conclusion, the Hawaii Assignment of Note and Deed of Trust as Security for Debt of Third Party is a legal mechanism used to transfer the rights and interests in a promissory note and deed of trust in order to secure and collect a debt owed by a third party. The different types of assignments can either be voluntary or involuntary, and in some cases may involve multiple notes and deeds of trust in mortgage-backed securities transactions.