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



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



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



The director may negotiate contracts with private
financial institutions upon reasonable terms for the participation of the
institutions with the State in the making of loans pursuant to this part
including but not limited to a term by which the financial institutions
undertake to service the loan.  Participation agreement shall provide that at
least ten per cent of the total loan be comprised of funds from the private
financial institution.  The private financial institution's share of the
disbursement of funds of any loan shall be the same percentage agreed upon for
its participation in the total amount of that loan.  No direct loan shall be
made unless a participating loan cannot be negotiated at reasonable terms. [L
1961, c 189, §13; Supp, §98P-13; HRS §209-27; ree L 1976, c 205, §1(2); am L
1987, c 336, §7; am L 1990, c 293, §8]