§207-3  Purpose for and terms of loans. 
Loans of state funds made pursuant to this part may be granted only for
construction of residences upon the premises.  Loans shall be secured by a
mortgage which may be subordinate only to another mortgage given to a lending
institution as security for a loan for the purpose provided above.  Loans shall
be made to relieve the burden of the required down payment or to extend the
period over which monthly payments would be required upon a finding that the
applicant's income would not otherwise reasonably support such payments.



Loans shall not exceed twenty-five per cent of
the cost of the improvements, and in no case shall any loan exceed $5,000.  The
director of finance shall by appropriate regulation establish the interest rate
on the state loan and may authorize repayment upon such terms as the director
of finance deems appropriate but in no case shall the payments extend beyond
forty years. [L 1961, c 194, §4; am L 1963, c 114, §1; Supp, §98L-4; HRS
§207-3; gen ch 1985]