HAR §15-5-10. Maximum loan amount; loan terms and restrictions

(a) Each participating loan to any one applicant shall be no more than ninety per cent of the total loan amount, and shall not exceed $100,000 in state funds. (b) Each direct loan to any one inventor shall not exceed $100,000 in state funds. (c) The director shall determine the extent and kinds of security required for each loan. When loans are secured, the security may be subordinated to direct loans made by financial institutions. (d) The director may prescribe a form of financial participation with the applicant including, but not limited to, warrants, options, or royalties on sales or earnings, in addition to direct loan repayment. (e)No loan shall be granted for a period exceeding ten years. (f) Each loan shall bear a simple interest rate of seven and one-half per cent a year or any other rate established by law. (g) The director shall determine the commencement date for the repayment of the first installment. The director may defer the initial payment on the principal and interest payments be deffered in excess of two years from date of issuance of the loan. [ Eff. APR 03 1982; am and comp DEC 21 1989] (Auth: HRS §211E-2) (Imp: HRS §211E-2)