Section 44.88.525. Conditions of debt refinancing guarantee.

The authority may not guarantee refinanced debt
        (1) unless the refinancing
             (A) is necessary to extend substantial debt payments over a longer period of time, thereby improving the applicant's net cash flow and working capital position consistent with the useful life of the assets being refinanced;
             (B) assists with short-term debt or cash expenditures when lenders will not extend reasonable longer terms to the applicant; and
             (C) creates additional economic opportunity or improves the viability of the borrower rather than just reducing the liability of the lender; or
        (2) unless the refinancing is necessary to place a permanent loan subsequent to an interim loan for financing of the project.

Notes

Implemented As

3 AAC 99.730

References

3 AAC 99.720
3 AAC 99.730

History

(Sec. 2 ch 162 SLA 1988; am Sec. 13 ch 109 SLA 1998)