SECTION 12. Marine Seafood Processing Revolving Loan Fund; rules and regulations advisory council; loan authorization

The Massachusetts Development Finance Agency may establish rules and regulations relative to the Marine Seafood Processing Revolving Loan Fund.

In addition thereto the Agency is hereby authorized to:

(a) establish a marine seafood processing loan fund advisory council, which shall consist of seven members, three members to be appointed by the Massachusetts Development Finance Agency board of directors, experienced in business and finance, who may also be members of the Massachusetts Development Finance Agency board, two members appointed by the commissioner of banks who are experienced in banking or marine financing, and may include the commissioner of banks or his designee, two members appointed by the commissioner of fisheries and wildlife who are experienced in marine food processing or marine affairs, and may include the commissioner or his designees, said council shall act in an advisory capacity to the Massachusetts Development Finance Agency board in matters relative to the financing of marine seafood processing loan applications and said council may review and provide technical comments regarding each loan application submitted to the Massachusetts Development Finance Agency board for approval.

Said council shall, after providing due notice and opportunity for a hearing, recommend a program to provide sources of funds, including, but not limited to, federal, state or private funding, and issuance of debt or industry assessments for the Marine Seafood Processing Revolving Fund. Such recommended program shall, after approval by the board of directors of Massachusetts Development Finance Agency, be filed with the clerks of the senate and the house of representatives and with the commissioner of administration.

(b) upon application of an industrial enterprise engaged in the collection or processing of seafood, make loans of moneys held in the Marine Seafood Processing Loan Fund and provide for the repayment and redeposit of such allocations and loans in the manner hereinafter provided:

(1) not more than $200,000 shall be loaned to any one enterprise. If the board determines, after the initial loan by the Agency, that additional moneys are required to protect the initial loan of the Agency, it may approve an additional loan not to exceed the amount of the initial loan; the processor may use the proceeds of the loan for the purposes of financing operations, inventory, or such other purposes as may be approved by the board;

(2) upon default, take title by foreclosure proceeding to any marine processing project to recover any loan previously made therefor by the Agency and pay all costs arising out of such foreclosure and acquisition from moneys held in the Marine Seafood Processing Loan Fund and sell, transfer and convey any such marine processing project to any responsible buyers in the event such sale, transfer or conveyance cannot be affected within a reasonable time. The Agency may lease such facilities to a responsible tenant or tenants to minimize financial losses and sustain employment. The Agency shall not lease marine processing facilities except under the conditions and for the purposes cited herein;

(c) finance marine seafood processing projects which shall be in addition to any other power of the Agency; provided, however, that nothing with respect to the Marine Seafood Processing Loan Fund shall be construed to limit or otherwise affect any other power of the Agency.