Section 44.88.155. Enterprise development account.

   (a) The enterprise development account is established in the revolving fund.  The enterprise development account is a trust fund for the uses and purposes of this chapter.  The enterprise development account consists of money or assets appropriated or transferred to the authority and other money or assets deposited in it by the authority.
   (b) The authority may establish in the enterprise development account the accounts it considers appropriate.
   (c) Money and other assets of the enterprise development account may be used to secure bonds of the authority issued to finance the purchase of loans for projects, to purchase participation in the loans for projects, or to fund a new markets tax credit assistance guarantee or loan under AS 44.88.700 - 44.88.799.
   (d) A loan participation purchased by the authority with assets of the enterprise development account or with proceeds of bonds secured by assets of the enterprise development account
        (1) may not exceed $25,000,000; however, in the case of a loan participation for qualified energy development, the loan participation may exceed $25,000,000 with legislative approval;
        (2) may not be purchased unless
             (A) the project applicant is not, or, if the applicant is not a single proprietorship, all members of the business enterprise or enterprises constituting the project applicant are not, in default on another loan made by the state or by a public corporation of the state; and
             (B) at least 10 percent of the principal amount of the loan is retained by the loan originator, or the loan is for financing improvements in energy efficiency;
        (3) may not be purchased if the loan to be purchased exceeds 75 percent of the appraised value of the collateral offered as security for the loan unless the amount of the loan in excess of this limit is federally insured or guaranteed or is insured by a qualified mortgage insurance company, except that the loan to be purchased under this paragraph may not exceed the total of loan proceeds used to refinance an existing debt plus the cost of new construction, expansion, or acquisition unless the proceeds from the additional amounts of the loan to be purchased are restricted to uses approved by the authority to finance commercial activity in the state by a business enterprise;
        (4) may not be purchased if the participation in the loan to be purchased is for a term longer than the following, except that a loan under (A) or (C) of this paragraph may not have a term longer than three-quarters of the authority's estimate of the life of the collateral offered as security for the loan:
             (A) 40 years from the date the loan is made in the case of a loan participation for a project described in AS 44.88.900(13)(E);
             (B) 50 years from the date the loan is made in the case of a loan participation for qualified energy development;
             (C) 25 years from the date the loan is made in the case of a loan participation for other projects;
        (5) may be made only if the participation in the loan to be purchased contains amortization provisions; the amortization provisions
             (A) must be complete and satisfactory to the authority and require periodic payments by the borrower;
             (B) may allow the loan originator to amortize the portion of the loan retained by the loan originator using a shorter amortization schedule than the amortization schedule for the portion of the loan held by the authority if
                  (i) in the authority's opinion, the project financed can support the increased debt service; and
                  (ii) the accelerated amortization schedule is required to induce the originator to make the loan;
        (6) may be made only if the participation in the loan to be purchased is in the form and contains the terms and provisions with respect to insurance, repairs, alterations, payment of taxes and assessments, default reserves, delinquency charges, default remedies, acceleration of maturity, secondary liens, and other matters the authority prescribes; and
        (7) may be made only if the participation in the loan to be purchased is secured as to repayment by a mortgage or other security instrument in the manner the authority determines is feasible to assure timely repayment under the loan documents entered into with the borrower.
   (e) The authority may adopt regulations for the administration of the enterprise development account including, without limitation, provisions for fees and agreements relating to application, loan commitment, servicing, and origination of loans by other lenders.
   (f) The authority may enter into agreements as to the use of the money in the enterprise development account, including without limitation, trust or custody arrangements with banks or trust companies.  It may also pledge, assign, or grant the agreement, interests under an agreement, or interests in the enterprise development account as may be necessary or appropriate to provide for payment and security for bonds of the authority issued to finance the purchase by the authority of loans for projects.
   (g) Notwithstanding any other provision of this section, the authority may waive or modify the requirements of this section as it considers appropriate and prudent in order to finance a project if the authority intends to own the project or in order to finance qualified energy development.
   (h) The provisions of this section apply only with respect to a loan participation purchased by the authority for projects under AS 44.88.155 - 44.88.159.

Authorities

44.88.085;44.88.090;44.88.100;44.88.130;44.88.140;44.88.155;44.88.159;44.88.750

Notes

Recent Bills that will modify this

HB 105 AIDEA: BONDS;PROGRAMS;LOANS;LNG PROJECT

Implemented As

3 AAC 99.160
3 AAC 99.200
3 AAC 99.205
3 AAC 99.220
3 AAC 99.230
3 AAC 99.240
3 AAC 99.250
3 AAC 99.302
3 AAC 99.305
3 AAC 99.320
3 AAC 99.330
3 AAC 99.340
3 AAC 99.350
3 AAC 99.370

References

3 AAC 99.205
3 AAC 99.260
3 AAC 99.302
3 AAC 99.360
AS 44.88.085 Administrative procedure.
AS 44.88.090 Bonds of the authority.
AS 44.88.100 Trust indentures and trust agreements.
AS 44.88.130 Pledge of the state.
AS 44.88.140 Exemption from taxation.
AS 44.88.155 Enterprise development account.
AS 44.88.159 Interest rates.
AS 44.88.750 New markets tax credit assistance leveraged loan.

History

(Sec. 65 ch 106 SLA 1980; am Sec. 38 ch 115 SLA 1981; am Sec. 7 ch 162 SLA 1984; am Sec. 21 - 27 ch 42 SLA 1987; am Sec. 32 ch 141 SLA 1988; am Sec. 12 - 14 ch 123 SLA 1990; am Sec. 1 ch 25 SLA 1991; am Sec. 5 - 7 ch 51 SLA 1992; am Sec. 24, 25 ch 18 SLA 1993; am Sec. 6 ch 109 SLA 1998; am Sec. 2 ch 73 SLA 2003; am Sec. 4, 5 ch 60 SLA 2012; am Sec. 1 ch 61 SLA 2012; am Sec. 4 ch 39 SLA 2015)