Note 7 Loans Receivable
Loans receivable (noncurrent portion) for the primary government and its component units, as of June 30, 2004, consisted of the following (amounts in thousands):
| Primary Government | |||
|---|---|---|---|
| Governmental | Business-Type | Component | |
| Activities | Activities | Units | |
| Industrial | $ - | $ - | $ 76,792 |
| Housing | 2,555 | - | - |
| Clean Water | 42,912 | 479,120 | - |
| Education | - | 28,509 | 71,502 |
| Other | 164,985 | 49,222 | - |
| Total Loans | 210,452 | 556,851 | 148,294 |
| Allowance for Uncollectibles | (1,577) | (7,471) | (10,847) |
| Loans Receivable, Net | $ 208,875 | $ 549,380 | $ 137,447 |
The Clean Water fund loans funds to qualified municipalities for planning, design, and construction of water quality projects. These loans are payable over a 20 year period at an annual interest rate of 2 percent and are secured by the full faith and credit or revenue pledges of the municipalities, or both.
The industrial loan program consists of loans made by the Connecticut Development Authority to finance the purchase of land, buildings, and equipment by qualified applicants and to finance other economic development programs of the Authority. These loans are collateralized by assets acquired from the proceeds of the related loans and have originating terms of 1 to 25 years and earn interest at rates ranging from 1.39 percent to 11.15 percent. As of June 30, 2004, loans in the amount of $12.0 million (including loans of $6.4 million made by other lending institutions) were insured by an insurance fund created by the Authority and by the faith and credit pledged by the State. This insurance fund had net assets of $6.4 million at year-end. Thus, the State is contingently liable in the event of any defaulted loans that could not be paid out of the assets of the insurance fund.