From time to time during the first twenty years of the term of any lease, the lessee shall have the right to extend the lease term to fifty-five years, commencing on the first day of the calendar month in which the lessee gives written notice thereof to the lessor, subject to the following conditions:

1. (1) At the time the right to extend the lease is exercised, the unexpired term of the lease is less than fifty years;
2. (2) The extension is for the purpose of mortgaging the leasehold interest;
3. (3) The lessee is not then in default in any respect under the lease; and

4. (4) The notice is accompanied by payment of a reasonable service charge.

   This section applies only to leases executed and effective subsequent to June 24, 1967.

[L 1967, c 307, §38; HRS §516-65]