STAND. COM. REP. NO. 1446

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1628
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 1628, S.D. 1, entitled: 
     "A BILL FOR AN ACT RELATING TO AGRICULTURAL LOANS,"

begs leave to report as follows:

     The purpose of this bill is to allow the Department of
Agriculture to underwrite and service agricultural loans with
cooperating private lenders and government loan programs.

     Generally, interest rates on loans made under this bill are
limited to two per cent above the prime interest rate.  The bill
also allows the Department and a cooperating lender to charge an
application filing fee and establish underwriting criteria by way
of a memorandum of agreement.

     Your Committee has amended the bill by including section
155-13, Hawaii Revised Statutes, relating to repayment and
refinancing within the restrictions applicable to loans made
under this bill.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1628, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 1628,
S.D. 2.


 
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                                   STAND. COM. REP. NO. 1446
                                   Page 2


                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                      HB1628 SD2