Sec. 44.81.225. Small loans to nonmembers.

172 words·~1 min read·/ak/title-44/chapter-81/44-81-225

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(a)To facilitate the development of commercial fisheries and commercial agriculture in geographic areas in which factors such as geographic considerations, uncertainties of communication, or limited demands do not encourage normal lending activities, the bank may make small loans to qualified borrowers who are not members of the bank.

(b)The provisions of this chapter apply to loans authorized by this section except that

(1)the borrower is not required to be a member of the bank at the time the loan is approved; and

(2)the principal amount of the portion of the loan made by the bank may not exceed $50,000.

(c)The total amount of money that may be loaned under this section may not exceed 25 percent of the total capital of the bank.

(d)To service loans made under this section, the bank may contract or make other arrangements with a public agency or with a legal entity that the bank determines to be responsible and competent to administer the loan.