Haw. Code R. § 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.

Notes

Haw. Code R. § 4-8-16

[Eff 1/31/85; comp 9/20/86] (Auth: HRS § 155-4) (Imp: §HRS 155-9)