§219-5  Powers; rules.  (a)  Thedepartment shall have the necessary powers to carry out the purposes of thischapter, including the following:

(1)  Prescribe the qualifications for eligibility ofapplicants for loans;

(2)  Establish preferences and priorities indetermining eligibility for loans and loan repayment requirements;

(3)  Establish the conditions, consistent with thepurpose of this chapter, for the granting or for the continuance of a grant ofa loan;

(4)  Provide for inspection at reasonable hours of theplant facilities, books, and records of an enterprise that has applied for orhas been granted a loan and require the submission of progress and finalreports;

(5)  Make loans for aquacultural products development,such as financing of plant construction, conversion, expansion, the acquisitionof land for expansion, the acquisition of equipment, machinery, supplies, ormaterials or for the supplying of working capital, consistent with section219-6;

(6)  Secure loans by duly recorded first mortgagesupon the following property within the State:

(A)  Fee simple farm land;

(B)  Leaseholds of farm land where the leasehas an unexpired term at least two years longer than the term of the loan;

(C)  Aquaculture products;

(D)  Other chattels;

(E)  A second mortgage when any prior mortgagedoes not contain provisions that might jeopardize the security position of thedepartment or the borrower's ability to repay; and

(F)  Written agreements, such as assignments ofincome;

(7)  Administer the Hawaii aquaculture loan revolvingfund and deposit into the fund all moneys received on account of principal;

(8)  Include in its budget for subsequent fiscalperiods amounts necessary to effectuate the purposes of this chapter;

(9)  Insure loans made to qualified aquaculturists byprivate lenders under sections 219-7 and 219-8; provided that at no time shallthe aggregate amount of the State's liability, contingent or otherwise, onthese loans exceed $1,000,000;

(10)  Participate in loans made to qualified aquaculturistsby private lenders under section 219-8;

(11)  Make direct loans to qualified aquaculturists asprovided under section 219-9;

(12)  Establish interest rates chargeable by the Statefor direct loans and by private lenders for insured and participation loans;and

(13)  Maintain a proper reserve in the aquaculture loanrevolving fund to guarantee payment of loans insured under sections 219-7 and219-8.

(b)  The chairperson may approve loans, wherethe requested amount, plus any principal balance on existing loans to theapplicant, does not exceed $25,000 of state funds.

(c)  The department shall adopt rules pursuantto chapter 91 to effectuate this section. [L 1971, c 181, pt of §1; am L 1977,c 212, pt of §2; am L 1978, c 88, §2; am L 1979, c 137, §2; am L 1995, c 76,§2; am L 1997, c 159, §2; am L 2002, c 16, §8(1)]