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

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

(c)  Loans made under this section shall bearsimple interest on the unpaid principal balance, charged on the actual amountdisbursed to the borrower.  The interest rate on loans of class "A","B", "C", "E", and "G" shall be at a rateof one per cent below the prime rate or at a rate of seven and one-half percent a year, whichever is less.  For purposes of this subsection, the primerate shall be determined on January 1 and July 1 of each year, and shall be theprime rate charged by the two largest banks in the State identified by thedepartment of commerce and consumer affairs.  If the prime rates of the twolargest banks are different, the lower prime rate of the two shall apply.  Theinterest rate on class "F" loans shall be six per cent a year.  Theinterest rate of class "H" loans shall be three per cent a year.  Ifthe money loaned is borrowed by the department, then the interest on loans ofthe classes shall be the rate as determined above or one per cent over the costto 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, fundsshall be disbursed in accordance with regulations of the department. [L 1959, c278, 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 Sp1977 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, c209, §3]