§219-6  Loan; limitation and terms. Loans made under this chapter shall be for the purposes and in accordance with theterms specified in classes "A", "B", "C","D", and "H" in paragraphs (1), (2), (3), (4), and (5) followingand shall be made only to applicants who meet the eligibility requirements specifiedtherein:

(1)  Class A:  Aquaculture farm ownership andimprovement loans.  To provide for:

(A)  The purchase or improvement of aquaculturefarm land and waters;

(B)  The purchase, construction, or improvementof adequate aquaculture farm dwellings, and other essential aquaculture farmfacilities; and

(C)  The liquidation of indebtedness incurredfor any of the foregoing purposes.

Such loans shall be for an amount not to exceed$400,000 and for a term not to exceed forty years.  To be eligible, theapplicant shall:

(i)  Derive, or present an acceptable plan toderive, a major portion of the applicant's income from and devote, or intend todevote, most of the applicant's time to aquaculture farming operations; and

(ii)  Have or be able to obtain the operatingcapital, including fishstock and equipment, needed to successfully operate theapplicant's aquaculture farm;

(2)  Class B:  Aquaculture operating loans.  To carryon and improve an aquaculture operation, including:

(A)  The purchase of aquaculture equipment andfishstock;

(B)  The payment of production and marketingexpenses, including materials, labor, and services;

(C)  The payment of living expenses; and

(D)  The liquidation of indebtedness incurredfor any of the foregoing purposes.

Such loans shall be for an amount not to exceed$400,000 and for a term not to exceed ten years.  To be eligible, an applicantshall derive or present an acceptable plan to derive a major portion of the applicant'sincome from and devote, or intend to devote, most of the applicant's time toaquaculture operations;

(3)  Class C:  Aquaculture cooperative and corporationloans.  To provide credit to aquaculturists' cooperative associations andcorporations engaged in marketing, purchasing, and processing, and providingfarm business services, including:

(A)  Facility loans to purchase or improveland, building, and equipment for an amount not to exceed $500,000 and a termnot to exceed twenty years; and

(B)  Operating loans to finance inventories ofsupplies, warehousing, and shipping commodities, extension of consumer creditto justified farmer-members, and other normal operating expenses for an amountnot to exceed $300,000 and a term not to exceed seven years.

To be eligible, a cooperative or corporationshall have at least seventy-five per cent of its board of directors andseventy-five per cent of its membership as shareholders who meet theeligibility requirements prescribed by the board and who devote most of theirtime to aquaculture operations;

(4)  Class D:  Emergency loans.  To provide relief andrehabilitation to qualified aquaculturists without limit as to purpose:

(A)  In areas stricken by extraordinaryrainstorms, windstorms, droughts, tidal waves, earthquakes, volcanic eruptions,and other natural catastrophes;

(B)  On farms stricken by aquatic diseases;

(C)  On farms seriously affected by prolongedshipping and dock strikes;

(D)  During economic emergencies such as thosecaused by overproduction and excessive imports; and

(E)  During other emergencies as determined bythe board.

The maximumamounts and period for the loans shall be determined by the board; providedthat the board shall require that any settlement or moneys received by qualifiedaquaculturists as a result of an emergency declared under this section shallfirst be applied to the repayment of an emergency loan made under this chapter;and

(5)  Class H: Aquaculture sustainable project loans shall provide for:

(A)  The purchase, construction, or improvementof essential farm buildings, including the improvement of existing farmbuildings related to the project;

(B)  The improvement of land that may berequired by the project;

(C)  The purchase of equipment and payment of anyrelated expenses, including materials, labor, and services;

(D)  Operating expenses associated with theproject; or

(E)  The liquidation of indebtedness incurredfor any of the foregoing purposes.

The loansshall be for an amount not to exceed $1,500,000 or eighty-five per cent of theproject cost, whichever is less, and for a term not to exceed forty years.

To beeligible, the applicant shall be a qualified aquaculturist of sound creditrating with the ability to repay the money borrowed, as determined by thedepartment.  Income from the applicant's aquacultural activities and anysupplemental income that may be generated from the project shall be the solecriterion for the department's determination of the applicant's ability torepay the money borrowed.  The department's determination may be based onprojections of income and expenses. [L 1971, c 181, pt of §1; am L 1977, c 212,pt of §2; gen ch 1985; am L 1997, c 159, §3; am L 2000, c 52, §1; am L 2002, c16, §8(2); am L 2008, c 209, §5]