Sec. 42.45.260. Bulk fuel loan account; loans.

224 words·~1 min read·/ak/title-42/chapter-45/42-45-260·

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(a)The bulk fuel loan account is established as a separate account within the fund. The division may make loans from the bulk fuel loan account as provided in AS 42.45.250 — 42.45.299.

(b)The division shall establish by regulation criteria under which communities or entities eligible under AS 42.45.250

(a)may obtain a bulk fuel loan. The criteria must require the division to consider the applicant's creditworthiness and repayment history and may require the consideration of other factors.

(c)The division shall evaluate each application for a bulk fuel loan and shall make findings if the application is denied.

(d)Loans made from the bulk fuel loan account to one borrower

(1)may not exceed $750,000 or, if the borrower is a cooperative corporation organized under AS 10.15 or an electric cooperative organized under AS 10.25 and uses the loan to purchase bulk fuel on behalf of more than one community, may not exceed $750,000 multiplied by the number of communities on whose behalf the bulk fuel is to be purchased or $1,800,000, whichever is less;

(2)shall be repaid within one year after the date of the loan disbursement; and

(3)may include additional terms and conditions required by the division.

(e)The division may contract with a private contractor to administer the loan account.