(a) A loan granted under this chapter
(1) may not exceed $5,000,000;
(2) may not exceed a term of 15 years;
(3) may not bear interest exceeding 10 percent; and
(4) may not exceed 75 percent of the appraised value of the collateral used to secure the loan.
(b) A loan may not be made under this chapter if it would result in an outstanding debt of the borrower to the fund in excess of $5,000,000.
(c) A loan made under this chapter shall be secured by
(1) a first priority lien or mortgage; or
(2) a second priority lien or mortgage that is subordinate to a valid first priority lien or mortgage if the total of the financing by the lender making the first mortgage and by the loan made under this chapter does not exceed 75 percent of the appraised value of the collateral used to secure the loan.
(d) Unless the loan under this chapter was made to underwrite placer mining activities, repayment of the loan principal shall begin not later than one year after the date mineral production begins or five years from the date the loan is made, whichever is sooner. For loans made under this chapter to underwrite placer mining activities, the department may not require repayment of principal to begin before the end of the second placer mining season after the loan is made. The accrual of interest on a loan made under this chapter begins when the loan is made, and the accrued interest shall be repaid on an annual basis, or repayment may be on a monthly or quarterly basis if the department and the borrower so agree. In this subsection, “placer mining season” means the time during a consecutive 12-month period when placer mining activities may be conducted by virtue of the thawed and fluid condition of the streams and rivers in the mining area.
(e) [Repealed, § 72 ch 113 SLA 1982.]