Section 37.17.540. Loan commitment conditions.

   (a) When issuing a commitment to make a BIDCO capitalization loan, the department shall make the loan closing contingent on
        (1) the BIDCO's receiving a license under AS 10.13, which may occur simultaneously with the loan closing;
        (2) the BIDCO's satisfying the capitalization requirements of AS 37.17.550; and
        (3) other conditions that the department may impose.
   (b) The department may not issue a loan commitment under this section unless the department determines that the prospective BIDCO satisfies high quality evaluation standards as determined by the department. The evaluation standards must include the following findings:
        (1) the loan is likely to substantially promote the purposes of AS 37.17.500 - 37.17.690;
        (2) the BIDCO's prospective management team is highly qualified to manage the BIDCO;
        (3) the BIDCO's business plan is a good business plan that, together with the management team, promotes confidence in the prospects for the long-term financial success and viability of the BIDCO; and
        (4) if the department issues a loan commitment to the BIDCO, it is probable that the BIDCO will be able to satisfy the capitalization requirements of AS 37.17.550.

Notes

History

(Sec. 5 ch 2 SLA 2004)