CHAPTER 1
Economic Development Loan Fund
§ 1001. Established.
§ 1002. Appropriation authorization.
§ 1003. Administration.
§ 1004. State Economic Development Loan Fund.
§ 1005. Applications.
§ 1006. Technical assistance.
§ 1007. Purpose.
§ 1008. Borrowing requirements.
§ 1009. Fiscal responsibility.
§ 1010. Misexpenditure of funds.
§ 1001. Established.
There is hereby established a revolving Economic Development Loan Fund for Truk District Chuuk State. All repayments made on loans from the Fund, regardless of the date of the loan, shall be held in the Fund for the purpose of making future loans. The District Treasurer State Director of the Treasury shall keep the District State Economic Development Loan Fund separate from the General Fund of the State Truk District Legislature.
Source: 13 TDC § 1, as amended by TDL 24-15, § 2 (1), modified.
§ 1002. Appropriation
authorization.
There is hereby authorized an annual appropriation out of the General Fund of the State Truk District Legislature of such sum as the Legislature deems necessary to
carry out the purposes of this Chapter.
Source: 13 TDC § 1, as amended by TDL 24-15, § 2 (2), modified.
§ 1003. Administration.
The Economic Development Loan Fund shall be administered by the District State Economic Development Loan Board. The District State Economic Development Loan Board shall make all decisions on the
granting of loans. The decisions of the Board shall be
final.
Source: 13 TDC § 2, modified.
§ 1004. StateDistrict Economic Development Loan Board.
The District State Economic Development Loan Board shall be the same Loan Board which reviews loan applications under the Trust Territory Federated States of Micronesia Economic Development Loan Fund. The composition of the Board shall be determined by the Administrator of the Trust Territory Federated States of Micronesia Economic
Development Loan Fund.
Source: 13 TDC § 3, modified.
§ 1005. Applications.
Any person wishing to borrow money under this Chapter shall request an application form from the District State Office of Economic Development and shall file such application, when completed, with the District State
Economic Development Loan Fund Board.
Source: 13 TDC § 4, modified.
§ 1006. Technical
assistance.
The District State Office of Economic Development shall have the responsibility for providing personal advice and assistance to each individual applying for a loan under this Chapter. The District State
Office of Economic Development shall prepare loan applications based on
the requirements of this Chapter. The Office shall also have the
responsibility for actively publicizing the existence of this loan fund,
and actively seeking prospective applicants. The Office shall
provide each applicant with assistance in completing his application and
qualifying for a loan.
Source: 13 TDC § 5, modified.
§ 1007. Purpose.
The Economic Development Loan Fund shall be used for the purpose of providing loans to any private citizen of Truk District Chuuk State or any Trukese Chuukese corporation or cooperative, wishing to begin, operate, or improve business operations in Truk District Chuuk State. A Trukese Chuukese corporation or cooperative shall be defined as a corporation or cooperative whose outstanding shares are owned in the majority, by residents of Truk Chuuk.
Source: 13 TDC § 6, modified.
§ 1008. Borrowing
requirements.
The following requirements
shall be embodied in the loan application and shall be considered
borrowing requirements under this Chapter:
(1) Applications must include general plans for the organization, capitalization, and operation of the proposed business, as well as approximate itemized cost estimates;
(2) Applications must include a sworn statement that the loan will be used strictly for the purpose of the business operation outlined in the application;
(3) Applications must include a sworn statement that the applicant has invested, or will invest in the immediate future, at least three percent of the total amount of the loan from his own savings;
(4) No single loans may be made in excess of fifteen thousand dollars ($15,000);
(5) Applications must include a Certificate of Collateral. The Certificate shall include an itemized list of each object of collateral. The fair market value of the collateral must be at least fifty percent of the value of the loan. Each year on the date the loan was granted, a new Certificate of Collateral must be filed with the Office of Economic Development itemizing the objects of collateral and demonstrating that the present fair market value of the objects of collateral is at least 50 fifty percent of the outstanding debt;
(6) Applicants shall agree to pay an annual interest rate of two percent of the outstanding debt;
(7) Loans may be granted for a period not to exceed 20 twenty years. The Office of Economic Development shall work directly with the applicant in determining the most appropriate term for each loan. Such determinations shall be subject to the concurrence of the District State Economic Development Loan Board;
(8) Applicants shall have a moratorium period not in excess of six months during which no payment on the loan will be required. The schedule of payments and the exact terms of repayment, including penalty charges for late payment, shall be determined individually between the Office of Economic Development and the applicant. All decisions shall become a part of the final application and be subject to concurrence by the District State Economic Development Loan Board.
Source: 13 TDC § 7, as amended by TDL 25-13, §§ 1-2, modified.
§ 1009. Fiscal
responsibility.
The payment of all funds under this Chapter and the keeping of payment records, both for money loaned and money repaid, shall be the responsibility of the District Treasurer State Director of the Treasury. The books of the Economic Development Loan Fund shall be open to the Economic Development Office, the District State Economic Development Loan Board, and the District Attorney General.
Source: 13 TDC § 8, modified.
§ 1010. Misexpenditure of
funds.
Any intentional misexpenditure
of funds loaned under this Chapter shall be punishable by a fine not to
exceed two thousand dollars, or imprisonment not to exceed three years, or
both such fine and imprisonment.
Source: 13 TDC § 9.