Section 15-24-48 - Maximum loan amount; loan terms and restrictions(a) A loan to any one applicant shall not exceed $50,000. For loans exceeding $25,000, the authority shall require greater assurances that the loan will be repaid on a case-by-case basis.(b) Loans shall not be made for relocation or reestablishment expenses for which the applicant receives payments or compensation from the authority or other governmental agency. No applicant shall have more than one active loan at a time.(c) The executive director shall determine the extent and kinds of security required for each loan. When loans are secured, such security may be subordinated to loans made by financial institutions. The applicant shall execute any promissory note, mortgage, loan agreement, or other agreement as may be required by the authority.(d) No loan shall be granted for a period exceeding twenty years. Loans shall be for periods determined by the authority and based upon the security for the loan, the financial capability of the applicant, and other lending practices.(e) Interest on loans shall be set at the prime interest rate as published in the Wall Street Journal at the date of closing or at a rate of seven and one-half per cent a year, whichever is lower, provided, the total interest paid by an applicant for a loan shall not be less than the loan servicing fees paid by the authority to third parties at the time of loan closing.(f) The executive director shall determine the commencement date for the repayment of the first installment. The executive director may defer the initial payment on the principal of a loan, but in no event shall the principal payments be deferred in excess of three years from date of issuance of the loan.(g) The executive director may defer the interest on the principal of a loan, but in no event shall interest payments be deferred in excess of one year from the date of issuance of the loan.[Eff 2/11/91, am 2/22/93] (Auth: HRS §§ 206E-4, 206E-10.5) (Imp: HRS §§ 206E-4, 206E-10.5)