§155-8  Direct loans.  (a)  The
department of agriculture may make loans directly to qualified farmers,
qualified new farmers, or qualified food manufacturers who are unable to obtain
sufficient funds at reasonable rates from private lenders either independently
or under sections 155-5, 155-5.5, and 155-6.



(b)  Loans made under this section shall be
limited by sections 155-9 to 155-13; provided that class "E" loans to
food manufacturers shall not be subject to [section] 155-10.



(c)  Loans made under this section shall bear
simple interest on the unpaid principal balance, charged on the actual amount
disbursed to the borrower.  The interest rate on loans of class "A",
"B", "C", "E", and "G" shall be at a rate
of one per cent below the prime rate or at a rate of seven and one-half per
cent a year, whichever is less.  For purposes of this subsection, the prime
rate shall be determined on January 1 and July 1 of each year, and shall be the
prime rate charged by the two largest banks in the State identified by the
department of commerce and consumer affairs.  If the prime rates of the two
largest banks are different, the lower prime rate of the two shall apply.  The
interest rate on class "F" loans shall be six per cent a year.  The
interest rate of class "H" loans shall be three per cent a year.  If
the money loaned is borrowed by the department, then the interest on loans of
the classes shall be the rate as determined above or one per cent over the cost
to the State of borrowing the money, whichever is greater.  Interest on class
"D" loans shall not be less than three per cent a year.



(d)  For loans made under this section, funds
shall be disbursed in accordance with regulations of the department. [L 1959, c
278, pt of §1; am L Sp 1959 2d, c 1, §25; am L 1961, c 104, §1(j) and c 132,
§2; Supp, §102-8; HRS §155-8; am L 1968, c 53, §6; am L 1972, c 87, §2; am L Sp
1977 1st, c 19, §1; am L 1979, c 222, §6; am L 1989, c 222, §3 and c 317, §2;
am L 1990, c 259, §2; am L 1997, c 258, §4; am L 2000, c 51, §9; am L 2008, c
209, §3]