HRS §206M-84
Agreements between the development corporation and lenders
This section says the development corporation must sign agreements with lenders to run the capital access program. These agreements cover fees, who pays them, how lenders make claims after a borrower defaults, and the maximum claim amount. The details are set in each agreement.
borrowers
The statute, as written — Program for capital access participation agreements
The development corporation shall enter into agreements with lenders for participation in the program for capital access that shall include but not be limited to: (1) Authorization for the lender to determine, collect, and transmit to the development corporation a fee or premium charge within a specified range established consistent with the purposes and objectives of the development corporation; (2) Specification of whether the premium charge shall be paid by the lender, the borrower, the development corporation, or by a combination thereof in specified proportions; (3) The procedure by which a lender may make a claim upon the development corporation upon default by the borrower, and the conditions under which a claim may be made; and (4) The maximum amount of claims a lender may make upon the development corporation, which amount may be equal to or less than the proportion of the total premiums contributed by the development corporation.
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