§219-6 - Loan; limitation and terms.

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

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

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

(B) The purchase, construction, or improvement
of adequate aquaculture farm dwellings, and other essential aquaculture farm
facilities; and

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

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

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

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

(A) The purchase of aquaculture equipment and
fishstock;

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

(D) The liquidation of indebtedness incurred
for 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 applicant
shall derive or present an acceptable plan to derive a major portion of the applicant's
income from and devote, or intend to devote, most of the applicant's time to
aquaculture operations;

(3) Class C: Aquaculture cooperative and corporation
loans. To provide credit to aquaculturists' cooperative associations and
corporations engaged in marketing, purchasing, and processing, and providing
farm business services, including:

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

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

To be eligible, a cooperative or corporation
shall have at least seventy-five per cent of its board of directors and
seventy-five per cent of its membership as shareholders who meet the
eligibility requirements prescribed by the board and who devote most of their
time to aquaculture operations;

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

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

(B) On farms stricken by aquatic diseases;

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

(E) During other emergencies as determined by
the board.

The maximum
amounts and period for the loans shall be determined by the board; provided
that the board shall require that any settlement or moneys received by qualified
aquaculturists as a result of an emergency declared under this section shall
first 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 improvement
of essential farm buildings, including the improvement of existing farm
buildings related to the project;

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

(D) Operating expenses associated with the
project; or

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

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

To be
eligible, the applicant shall be a qualified aquaculturist of sound credit
rating with the ability to repay the money borrowed, as determined by the
department. Income from the applicant's aquacultural activities and any
supplemental income that may be generated from the project shall be the sole
criterion for the department's determination of the applicant's ability to
repay the money borrowed. The department's determination may be based on
projections 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, c
16, §8(2); am L 2008, c 209, §5]