Section 37.17.550. Initial capitalization of BIDCO.  


Latest version.
  •    (a) Subject to AS 37.17.520(b), the initial capitalization of a BIDCO to which the department makes a BIDCO capitalization loan must include
            (1) at least $500,000 in equity investment in the BIDCO, in addition to any organization costs paid for or owed by the BIDCO;
            (2) the BIDCO capitalization loan; and
            (3) additional capital in an amount required by the department and on terms and conditions acceptable to the department; the additional capital may be in the form of debt, grants, equity investment in addition to the minimum equity investment requirement of $500,000 under (1) of this subsection, or a combination of debt, grants, and the equity investment.
       (b) The minimum equity investment under (a)(1) of this section must be fully received by the BIDCO before or at closing of the BIDCO capitalization loan. The BIDCO capitalization loan shall be fully disbursed to the BIDCO at closing. The additional capital shall also be fully disbursed at closing; however, if the department is satisfied that there is a firm commitment for the additional capital on terms acceptable to the department, that the source for the additional capital will deliver on the firm commitment, and that the documents evidencing the additional capital have been executed and include terms acceptable to the department, the additional capital may be disbursed to the BIDCO on a phased-in basis on terms acceptable to the department.

Authorities

37.17.540;37.17.560;37.17.690

Notes


References

AS 37.17.540 Loan commitment conditions.
AS 37.17.560 Subordination of BIDCO capitalization loan.
AS 37.17.690 Definitions.
History

(Sec. 5 ch 2 SLA 2004)