HAR §4-9-11. Repayment; refinancing

(a) Loans made under this chapter shall be repaid in accordance with terms of the note and payments shall be applied first to interest and then to principal. (b) Additional payments in any sum, or the payment of the entire principal may be made at any date within the time period of the loan. (c) The board may, for satisfactory cause and at its discretion, extend the time within which the installments of principal may be paid for a period not to exceed five years subject to the following conditions: (1) Payments may be waived by the chairman, upon written request showing good cause; (2) Interest payments shall be kept current; and (3) For loans used for products requiring eighteen months or more before first harvest, the department may defer the first 9-7 payment of principal until the first harvest or for a period not to exceed two years, whichever occurs first. (d) The borrower shall refinance the balance owed on any loan as soon as he is able to obtain credit from other sources at reasonable rates and terms. (e) All payments due the state shall be remitted to the State of Hawaii, and can be paid at any agricultural loan division office in the state. [Eff 9/28/81] (Auth: HRS §219-5) (Imp: HRS §210-4, 5, 7, 8)