HRS §207-4
How the state hires lenders to handle loan paperwork
The finance director can make deals with banks or credit unions to process loan applications and manage loan payments. The lender that gives the construction loan must do the servicing. The contract can say the state gets repaid after the lender is paid, and can include other terms the director thinks are right.
financial institutionsstate agencies
The statute, as written — Contract with lending institution
The director of finance may, and as far as practicable shall, contract with lending institutions for the processing of applications for loans of state funds and the servicing of these loans. The servicing shall be performed only by the lending institution which makes the loan for the principal cost of construction. In furtherance of the purposes of this part the contract may provide for the loan of state funds to be repaid after the funds of the lending institution are repaid in full and for payment to lending institutions for servicing the State's portion of the total loan and may include other terms deemed appropriate by the director of finance.
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