Hoku Corporation announced it had entered into a $10 million credit agreement with the New York branch of China Merchants Bank Co. Ltd. To date, Hoku has borrowed an aggregate of $78 million from China Merchants Bank. The proceeds will be used primarily to pay for operating and capital expenses for the company's polysilicon production plant in Pocatello, Idaho. Hoku has borrowed all $10 million that is available under the credit agreement, and must repay all borrowed amounts on the five-year anniversary of the effective date of the credit agreement. Loans under the credit agreement are secured by a standby letter of credit drawn by Tianwei New Energy Holdings Co. Ltd. in Chengdu, China and issued to China Merchants Bank, as collateral. Tianwei New Energy Holdings Co. Ltd., is Hoku's majority stockholder. Interest on borrowed amounts will accrue at the LIBOR rate plus 2%, and is payable annually.