§189-45  Loans, terms, and restrictions. The department may make loans to individuals or businesses for the financing ofexpenses incurred in the purchase, construction, renovation, maintenance, andrepair of small fishing vessels.  The loans may be made in conjunction withloans made by other financial institutions including the Small BusinessAdministration or loans guaranteed by the National Marine Fisheries Service. Where the loans made by the department are secured, such security may besubordinated to the loans made by other financial institutions, when suchsubordination is required in order to obtain loans from such institutions.  Thenecessity for and the extent of security required in any loan shall bedetermined by the director.

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

(1)  No loan shall exceed $50,000.

(2)  No loan shall be made for a term exceeding tenyears.

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

(4)  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. [L 1975, c 167, §11; am L 1976, c 70, pt of §2]