§155-13  Repayment; refinancing.  (a) Loans made under this chapter shall be repaid in accordance with a payment planspecified by the lender, with payments applied first to interest and then toprincipal.

(b)  Additional payments in any sums, or the paymentof the entire principal, may be made at any date within the time period of theloan.

(c)  The lender may, for satisfactory cause andat its discretion, extend the time within which the installments of principalmay be paid for a period not to exceed two years; provided that the lender mayfurther extend the time beyond the said two years for an additional period notto exceed three years if the borrower is in a state of extreme financialhardship which is caused by factors beyond the borrower's control, whichfactors include, but not limited to, the following:  depressed prices, extendedpoor weather conditions, persistent crop failures, and rapidly increasingproduction costs not accompanied by a corresponding increase in the crop price.

(d)  For loans in class "C" which aremade to plant and cultivate land used for crops requiring eighteen months ormore before first maturing, the department of agriculture may defer the firstpayment of principal and interest until the crop first matures; provided that:

(1)  The chairperson shall determine the commencementdate for payment of the first installment.  The chairperson may defer theinitial payment on the principal of a loan, not to exceed five years from thedate of issuance of the loan; and

(2)  The chairperson may defer the interest on theprincipal of a loan, not to exceed two years from the date of issuance of theloan.

For purposes of this subsection,"chairperson" means the chairperson of the board of agriculture.

(e)  The borrower will be expected to refinancethe balance owed on any direct loan as soon as the borrower is able to obtaincredit from other sources at reasonable rates and terms. [L 1959, c 278, pt of§1; am L Sp 1959 2d, c 1, §25; am L 1961, c 104, §1(o), (p) and c 132, §2;Supp, §102-13; HRS §155-13; am L 1978, c 190, §1; gen ch 1985; am L 1995, c 78,§1; am L 1997, c 162, §1]