HAR §4-8-16. Scope of emergency loans

(a) An emergency loan is intended to allow the applicant to continue farming at a level comparable to the applicant's activities immediately prior to losses from the emergency. Replacements for losses of facility and equipment must contribute significantly to farming and shall be reasonably similar to damaged or loss items. (b) An emergency loan shall not be provided to: (1) Establish an applicant in farming nor to expand substantially the operations of the applicant carried on immediately prior to the emergency; (2) Enable an applicant to reorganize farm or ranching operations; or (3) An applicant not affected by the emergency. (c) Since an emergency loan involves higher than normal credit risk, the loan shall be made only where a sound basis for credit exists and if there is reasonable assurance that the loan will be repaid in full. [Eff 1/31/85; comp 9/20/86] (Auth: HRS §155- 4) (Imp: §HRS 155-9) 4-8-17 Review, analysis, and recommendation. (a) The applicant shall be responsible for completing the application. Information shall be current with necessary supporting documents or exhibits. The loan officer shall inform the applicant of any deficiency. 8-11 If the applicant fails to complete the application within a reasonable period of time, the incomplete application may be canceled by the department. The applicant may submit a new application with completed information. (b) Each application shall be subject to assessment of credit factors such as management ability, credit history, repayment ability, financial position, adequacy of security, and past performance. A loan recommended for approval by the loan officer may include approval conditions, and shall be submitted to the division head for review. (c) The division head shall review each application for compliance with this chapter and chapter 155, Hawaii Revised Statutes. (d) A loan application recommended for approval by the division head shall be submitted to the chairperson for approval by the board only if there are funds available. Should it become necessary because of a scarcity of funds to restrict loan activities, the first priority shall be given to participating loans. (e) The board may approve or disapprove a submitted application and may modify or add to its approval conditions. The chairperson may approve or disapprove a submitted application and may modify or add to its approval conditions, where the requested amount plus any principal balance on existing loans to the applicant, does not exceed $25,000 of State funds. [Eff 1/31/86; comp 9/20/86] (Auth: HRS §155-4) (Imp: HRS §155-4)