D.__The authority may establish flexible repayment options to meet the reasonable needs of the borrower, including where necessary deferral of payments of principal, or principal and interest, until the borrower's revenues can support debt service payments.

E.__A cranberry product loan is subject to other terms and conditions prescribed by rule by the authority, including, but not limited to, a mechanism for reserving funds for or giving priority to projects in areas of the State determined by the authority to require special assistance.

3.__Interest rate.__The authority may establish by rule interest rates applicable to loans under the Cranberry Product Loan Program, except that this rate may not be less than 4% per year.__If the authority does not establish an interest rate, the rate on a loan is a rate that is 2% less than the prime rate of interest as determined by the authority.

4.__Administrative costs.__The authority may establish by rule fees for the administrative costs of the Cranberry Product Loan Program, including loan closing and servicing fees.

Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

Sec. B-6. Contingent on bond issue. This Part takes effect only if the bond issue submitted pursuant to Part A of this Act is approved by the voters of the State.

SUMMARY

This bill creates the Cranberry Product Loan Fund and the Cranberry Product Loan Program as mechanisms to promote the cranberry industry in Maine. The Cranberry Product Loan Program is administered by the Finance Authority of Maine. The authority will make loans under the program to eligible borrowers for cranberry growing, harvesting, processing or marketing projects. Because of the length of time it takes to raise a marketable crop of cranberries, the authority has the ability to defer loan payments if necessary.

The bill also proposes a bond issue of $5,000,000 to capitalize the Cranberry Product Loan Fund.