§209-27  Types of loans; participation. The director of business, economic development, and tourism may make two typesof loans:

(1)  Loans in participation with private financialinstitutions to be known as participating loans; and

(2)  Loans wholly from state funds to be known asdirect loans.

The director may negotiate contracts with privatefinancial institutions upon reasonable terms for the participation of theinstitutions with the State in the making of loans pursuant to this partincluding but not limited to a term by which the financial institutionsundertake to service the loan.  Participation agreement shall provide that atleast ten per cent of the total loan be comprised of funds from the privatefinancial institution.  The private financial institution's share of thedisbursement of funds of any loan shall be the same percentage agreed upon forits participation in the total amount of that loan.  No direct loan shall bemade unless a participating loan cannot be negotiated at reasonable terms. [L1961, c 189, §13; Supp, §98P-13; HRS §209-27; ree L 1976, c 205, §1(2); am L1987, c 336, §7; am L 1990, c 293, §8]