H.B. 530 Summary

• Establishes a linked investment program to support agriculture in Hawaii by allowing the state to place certificates of deposit with eligible lending institutions to facilitate agricultural loans.

• Authorizes the Director of Finance to invest up to $5,000,000 of state treasury moneys in linked investments with federally insured banks, savings and loan associations, and credit unions.

• Requires eligible lending institutions to lend up to 90% of the certificate of deposit value to eligible agricultural borrowers at rates not exceeding the prime rate, with certificates earning market-rate interest and having no early withdrawal penalties.

• Adds linked investments as an authorized state investment option under Hawaii Revised Statutes Section 36-21.

• Appropriates funds to the Department of Budget and Finance to hire one full-time position to administer the linked investment program, effective July 1, 2150.