REPORT TITLE:
AG Loan Program


DESCRIPTION:
Includes credit unions under the definition of "private lender"
to allow farmers the opportunity to go to the financial
institution, which is their primary "bank", to obtain
agricultural loans.

 
a                                                      AGR-2(99)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1060
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO AGRICULTURAL LOANS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 155-1, Hawaii Revised Statutes, is
 
 2 amended by amending the definition of "private lender" to
 
 3 read as follows:
 
 4     "(6)  "Private lender" includes banks, savings and loan
 
 5           associations, credit unions, mortgage companies, and
 
 6           other qualified companies whose business includes the
 
 7           making of loans in the State."
 
 8      SECTION 2.  Section 155-3, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "155-3  Restriction.  Loans provided for by this chapter
 
11 shall be authorized only if these loans cannot be made by two
 
12 [private] lenders, [a] which may include any of the following:
 
13 private lenders, members of the farm credit system [bank], or the
 
14 United States Department of Agriculture, except that the board of
 
15 agriculture may waive this requirement for emergency loans."
 
16      SECTION 3.  Section 155-6, Hawaii Revised Statutes, is
 
17 amended by amending subsection (e) to read as follows:
 
18      "(e)  When a participating loan has been approved by the
 
19 department, its share [shall] may be paid to the participating
 

 
a                                                      AGR-2(99)
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 1 private lender for disbursement to the borrower.  [The private
 
 2 lender shall collect all payments from the borrower and otherwise
 
 3 service the loan.]"
 
 4      SECTION 4.  Statutory material to be repealed is bracketed.
 
 5 New statutory material is underscored.
 
 6      SECTION 5.  This Act shall take effect upon its approval. 
 
 7 
 
 8                           INTRODUCED BY:  _______________________
 

 
a                                                      AGR-2(99)