§189-45 - Loans, terms, and restrictions.
§189-45 Loans, terms, and restrictions. The department may make loans to individuals or businesses for the financing of expenses incurred in the purchase, construction, renovation, maintenance, and repair of small fishing vessels. The loans may be made in conjunction with loans made by other financial institutions including the Small Business Administration or loans guaranteed by the National Marine Fisheries Service. Where the loans made by the department are secured, such security may be subordinated to the loans made by other financial institutions, when such subordination is required in order to obtain loans from such institutions. The necessity for and the extent of security required in any loan shall be determined by the director.
The foregoing powers shall be subject, however, to the following restrictions and limitations:
(1) No loan shall exceed $50,000.
(2) No loan shall be made for a term exceeding ten years.
(3) Each loan shall bear simple interest at the rate of seven and one-half per cent a year.
(4) The commencement date for the repayment of the first installment on the principal of each loan may be deferred by the director, but in no event shall such initial payment be deferred in excess of two years. [L 1975, c 167, §11; am L 1976, c 70, pt of §2]