HAR §4-8-8. Letters of decline

(a) The division requires that each direct loan application shall include letters of decline as follows: (1) The applicant's bank of account (private lender); (2) One other private lender; 8-6 (3) Federal Land Bank Association of Hawaii for classes "A" and "B" loans and for classes "D" and "F" loans where loans are primarily for class "A" purposes; (4) Hawaii Production Credit Association for class "C" loans and for classes "D" and "F" loans where loans are primarily for class "C" purposes; (5) Sacramento Bank for Cooperatives or their authorized representative for class "E" loans; and (6) Farmers Home Administration of the United States Department of Agriculture. (b) The division requires letters of decline for participating loans from the participating private lender and from the Farmers Home Administration of the United States Department of Agriculture. If a substantial part of a proposed participating loan is to refinance a debt held by another private lender who also has a participating agreement with the State, a letter of decline will be required from that lender also. (c) To facilitate processing of class "D" emergency loans, the division may accept a blanket letter of decline from a lender to cover a specific commodity group or area which the lender will not finance because of the lender's policy or where the financial situation will not warrant extension of credit by the lender. [Eff 1/31/85; Comp 9/20/86] (Auth: HRS §155-4) (Imp: HRS §§155-3, 155-6, 155-8)