(a) Except as otherwise provided by this chapter, the department may not determine the recipient, amount, or interest rate of a capital access loan or the fees or other requirements related to the loan.

Terms Used In Hawaii Revised Statutes 211D-5

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Capital access loan: means a loan that is entitled to be secured by the fund. See Hawaii Revised Statutes 211D-1
  • Department: means the department of business, economic development, and tourism. See Hawaii Revised Statutes 211D-1
  • Financial institution: includes a bank, trust company, banking association, savings and loan association, mortgage company, investment bank, credit union, or nontraditional financial institution. See Hawaii Revised Statutes 211D-1
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Loan: includes a line of credit. See Hawaii Revised Statutes 211D-1
  • Nonprofit organization: means a private, nonprofit, tax-exempt corporation, association, or organization listed in section 501(c)(3), Internal Revenue Code of 1986, as amended, that is domiciled in this State. See Hawaii Revised Statutes 211D-1
  • Program: means the capital access program. See Hawaii Revised Statutes 211D-1
(b) A loan is not eligible to be enrolled under this chapter if the loan is for:

(1) Construction or purchase of residential housing;
(2) Simple real estate investments, excluding the development or improvement of commercial real estate occupied by the borrower’s business or organization;
(3) Refinancing of existing loans not originally enrolled under this chapter; or
(4) Inside bank transactions, as defined by the department.
(c) The borrower of a capital access loan shall apply the loan to working capital or to the purchase, construction, or lease of capital assets, including buildings and equipment used by the business or nonprofit organization. Working capital uses include the cost of exporting, accounts receivable, payroll, inventory, and other financing needs of the business or organization.
(d) A capital access loan may be sold on the secondary market under conditions as may be determined by the department.
(e) When enrolling a loan in the program, a participating financial institution may specify an amount to be covered under the program that is less than the total amount of the loan.

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