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

(1) Prescribe the qualifications for eligibility of applicants for loans;

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

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

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

(5) Make loans for aquacultural products development, such as financing of plant construction, conversion, expansion, the acquisition of land for expansion, the acquisition of equipment, machinery, supplies, or materials or for the supplying of working capital, consistent with section 219-6;

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

(A) Fee simple farm land;

(B) Leaseholds of farm land where the lease has 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 mortgage does not contain provisions that might jeopardize the security position of the department or the borrower's ability to repay; and

(F) Written agreements, such as assignments of income;

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

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

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

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

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

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

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

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

(c) The department shall adopt rules pursuant to 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)]