Section 44.88.730. Conditions of loan guarantee.

   (a) The authority may guarantee a loan under AS 44.88.700 - 44.88.799 if the
        (1) loan
             (A) is commercially reasonable;
             (B) contains payment provisions satisfactory to the authority; and
             (C) is secured by acceptable collateral;
        (2) project
             (A) is allocated new markets tax credits by a qualified community development entity;
             (B) promotes economic development in the state; and
             (C) is not a housing project;
        (3) borrower demonstrates the ability to repay the loan from either or both of the following:
             (A) net cash flow of the borrower;
             (B) proceeds from the sale of current assets that are collateral for the loan if the sale or receipt of proceeds from the sale is an event that creates a payment obligation; in this subparagraph, "current asset" means property that will be or could be converted into cash within one year in the normal operation of a business;
        (4) term of the loan does not exceed 10 years;
        (5) loan is originated with and serviced by a financial institution.
   (b) The authority may provide a guarantee for up to 100 percent of a loan that qualifies under AS 44.88.700 - 44.88.799.

Notes

Implemented As

3 AAC 102.010
3 AAC 102.040
3 AAC 102.080

References

3 AAC 102.080

History

(Sec. 2 ch 61 SLA 2012)