Michigan Laws 324.95233 – Marina dredging loan origination program; establishment; requirements; limitation on loan amount
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Terms Used In Michigan Laws 324.95233
- Dredging: means the removal of sediments from bottomland. See Michigan Laws 324.95232
- Eligible marina: means a privately owned, commercial facility in this state that meets all of the following requirements:
(i) Extends into or over the Great Lakes, their connecting waters, or an inland lake or stream. See Michigan Laws 324.95232Financial institution: means a state or national bank, a state or federally chartered savings and loan association, a state or federally chartered savings bank, a state or federally chartered credit union, or other regulated lending institution whose deposits are insured by an agency of the United States government, that maintains a principal office or branch office in this state under the laws of this state or the United States. See Michigan Laws 324.95232 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 Marina dredging loan: means a loan or the refinancing of all or a portion of a loan made to the owner of an eligible marina for dredging costs necessitated by low water levels to accommodate the use of the marina by recreational watercraft. See Michigan Laws 324.95232 Person: means an individual, partnership, corporation, association, governmental entity, or other legal entity. See Michigan Laws 324.95232 Program: means the marina dredging loan origination program established under this act. See Michigan Laws 324.95232 Qualified financial institution: means a financial institution that has a physical location in this state or whose principal office is located in this state, or both. See Michigan Laws 324.95232 state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(1) The state treasurer may establish a marina dredging loan origination program as provided in this act.
(2) The program shall meet all of the following:
(a) A qualified financial institution shall make marina dredging loans before March 1, 2014.
(b) A person receiving a marina dredging loan shall pay an interest rate authorized under this act and established by the qualified financial institution.
(c) This state shall pay loan origination fees, on a first come first serve basis, for administrative costs incurred by the qualified financial institution equal to 5% of the original principal amount of the loan.
(3) A marina dredging loan shall comply with all of the following:
(a) Interest shall be set by the qualified financial institution at a rate of not more than the higher of 2.5% or the adjusted prime rate minus 0.75%. As used in this subdivision, “adjusted prime rate” means that term as it is defined in section 23 of 1941 PA 122, MCL 205.23.
(b) The term of the loan shall not be more than 5 years.
(c) The first principal payment required under the loan shall not occur before 24 months after the issuance of the loan.
(4) A marina dredging loan shall not exceed $500,000.00 per eligible marina.