Section 16.10.915. Limitations on loans.

   (a) Except as provided in (b) and (c) of this section, a loan under AS 16.10.900 - 16.10.945
        (1) may not exceed $100,000 a year;
        (2) may not exceed a term of 20 years, except for extensions under AS 16.10.905;
        (3) may not bear interest at a rate greater than the prime rate, as defined in AS 44.88.599, plus one percentage point, but which may not be less than five percent a year or more than nine percent a year;
        (4) must be secured by a first priority lien on collateral acceptable to the department; and
        (5) may not be made to a person who has a past due child support obligation established by court order or by the child support services agency under AS 25.27.160 - 25.27.220 at the time of application.
   (b) Subsequent loans may be made to the borrower under AS 16.10.910 if the total of the balances outstanding on the loans received by the borrower does not exceed $300,000.
   (c) A loan under AS 16.10.910 may be made for the purchase of boats or vessels determined to be integral to the operation of the farm.
   (d) For a loan made under AS 16.10.900 - 16.10.945, the department may provide a reduction of the interest rate of not more than two percent if at least 50 percent of the loan proceeds are used by the borrower for purchasing products manufactured or produced in the state. When the department offers a reduction under this subsection, the department shall provide the reduction to all loan applicants who meet the criterion described in this subsection. In this subsection, "manufactured or produced" means processing, developing, or making an item into a new item with a distinct character and use.

Notes

Implemented As

3 AAC 80.420
3 AAC 80.440
3 AAC 80.445
3 AAC 80.450

References

3 AAC 80.420
3 AAC 80.445

History

(Sec. 12 ch 58 SLA 2012)