§189-25  Loans, terms, and restrictions. The department may make loans to individuals or businesses for the financing ofthe purchase, construction, renovation, maintenance, or repair of vessels.  Theloans may be made in conjunction with loans made by other financialinstitutions including the Financial Assistance Division of the National MarineFisheries Service and the SBA.  Where the loans made by the department aresecured, such security may be subordinated to the loans made by other financialinstitutions, when subordination is required in order to obtain loans from theinstitutions.  The necessity for and the extent of security required in anyloan shall be determined by the director.

The foregoing powers shall be subject, however,to the following restrictions and limitations:

(1)  No loan of state funds shall exceed eighty percent of the cost of purchase, construction, renovation, maintenance, or repairof a vessel.

(2)  No loan for renovation, maintenance, or repair ofa fishing vessel shall exceed $50,000 nor for a term exceeding ten years.

(3)  No loan for purchase or construction of a fishingvessel shall be made for a term exceeding twenty years.

(4)  Each loan shall bear simple interest at the rateof seven and one-half per cent a year.

(5)  The commencement date for the repayment of thefirst installment on the principal of each loan may be deferred by thedirector, but in no event shall such initial payment be deferred in excess oftwo years.

(6)  In the event the State repossesses any vesselfinanced under this program, the repossessed vessel shall not be resold to theindividual to whom the loan has been made, or to anyone with a financialinterest in the vessel. [L 1965, c 193, §6; Supp, §21-105; HRS §189-25; am L1968, c 28, §3; am L 1975, c 167, pt of §4; am L 1976, c 70, pt of §1]

 

Note

 

  "Financial Assistance Division", National MarineFisheries Service, now known as "Financial Services Division".