§189-25  Loans, terms, and restrictions. 
The department may make loans to individuals or businesses for the financing of
the purchase, construction, renovation, maintenance, or repair of vessels.  The
loans may be made in conjunction with loans made by other financial
institutions including the Financial Assistance Division of the National Marine
Fisheries Service and the SBA.  Where the loans made by the department are
secured, such security may be subordinated to the loans made by other financial
institutions, when subordination is required in order to obtain loans from the
institutions.  The necessity for and the extent of security required in any
loan 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 per
cent of the cost of purchase, construction, renovation, maintenance, or repair
of a vessel.



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



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



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



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



(6)  In the event the State repossesses any vessel
financed under this program, the repossessed vessel shall not be resold to the
individual to whom the loan has been made, or to anyone with a financial
interest in the vessel. [L 1965, c 193, §6; Supp, §21-105; HRS §189-25; am L
1968, c 28, §3; am L 1975, c 167, pt of §4; am L 1976, c 70, pt of §1]



 



Note



 



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