Loans made under this chapter shall be for the purposes and in accordance with the terms specified in classes "A", "B", "C", "D", and "H" in paragraphs (1), (2), (3), (4), and (5) following and shall be made only to applicants who meet the eligibility requirements specified therein:

1. (1) Class A: Aquaculture farm ownership and improvement loans. To provide for:

   1. (A) The purchase or improvement of aquaculture farm land and waters;
   2. (B) The purchase, construction, or improvement of adequate aquaculture farm dwellings, and other essential aquaculture farm facilities; and

   3. (C) The liquidation of indebtedness incurred for any of the foregoing purposes.

      Such loans shall be for an amount not to exceed $400,000 and for a term not to exceed forty years. To be eligible, the applicant shall:

   4. (i) Derive, or present an acceptable plan to derive, a major portion of the applicant's income from and devote, or intend to devote, most of the applicant's time to aquaculture farming operations; and
   5. (ii) Have or be able to obtain the operating capital, including fishstock and equipment, needed to successfully operate the applicant's aquaculture farm;

2. (2) Class B: Aquaculture operating loans. To carry on and improve an aquaculture operation, including:

   1. (A) The purchase of aquaculture equipment and fishstock;
   2. (B) The payment of production and marketing expenses, including materials, labor, and services;
   3. (C) The payment of living expenses; and

   4. (D) The liquidation of indebtedness incurred for any of the foregoing purposes.

      Such loans shall be for an amount not to exceed $400,000 and for a term not to exceed ten years. To be eligible, an applicant shall derive or present an acceptable plan to derive a major portion of the applicant's income from and devote, or intend to devote, most of the applicant's time to aquaculture operations;

3. (3) Class C: Aquaculture cooperative and corporation loans. To provide credit to aquaculturists' cooperative associations and corporations engaged in marketing, purchasing, and processing, and providing farm business services, including:

   1. (A) Facility loans to purchase or improve land, building, and equipment for an amount not to exceed $500,000 and a term not to exceed twenty years; and

   2. (B) Operating loans to finance inventories of supplies, warehousing, and shipping commodities, extension of consumer credit to justified farmer-members, and other normal operating expenses for an amount not to exceed $300,000 and a term not to exceed seven years.

      To be eligible, a cooperative or corporation shall have at least seventy-five per cent of its board of directors and seventy-five per cent of its membership as shareholders who meet the eligibility requirements prescribed by the board and who devote most of their time to aquaculture operations;

4. (4) Class D: Emergency loans. To provide relief and rehabilitation to qualified aquaculturists without limit as to purpose:

   1. (A) In areas stricken by extraordinary rainstorms, windstorms, droughts, tidal waves, earthquakes, volcanic eruptions, and other natural catastrophes;
   2. (B) On farms stricken by aquatic diseases;
   3. (C) On farms seriously affected by prolonged shipping and dock strikes;
   4. (D) During economic emergencies such as those caused by overproduction and excessive imports; and

   5. (E) During other emergencies as determined by the board.

      The maximum amounts and period for the loans shall be determined by the board; provided that the board shall require that any settlement or moneys received by qualified aquaculturists as a result of an emergency declared under this section shall first be applied to the repayment of an emergency loan made under this chapter; and

5. (5) Class H: Aquaculture sustainable project loans shall provide for:

   1. (A) The purchase, construction, or improvement of essential farm buildings, including the improvement of existing farm buildings related to the project;
   2. (B) The improvement of land that may be required by the project;
   3. (C) The purchase of equipment and payment of any related expenses, including materials, labor, and services;
   4. (D) Operating expenses associated with the project; or

   5. (E) The liquidation of indebtedness incurred for any of the foregoing purposes.

      The loans shall be for an amount not to exceed $1,500,000 or eighty-five per cent of the project cost, whichever is less, and for a term not to exceed forty years.

      To be eligible, the applicant shall be a qualified aquaculturist of sound credit rating with the ability to repay the money borrowed, as determined by the department. Income from the applicant's aquacultural activities and any supplemental income that may be generated from the project shall be the sole criterion for the department's determination of the applicant's ability to repay the money borrowed. The department's determination may be based on projections of income and expenses.

[L 1971, c 181, pt of §1; am L 1977, c 212, pt of §2; gen ch 1985; am L 1997, c 159, §3; am L 2000, c 52, §1; am L 2002, c 16, §8(2); am L 2008, c 209, §5]