Sec. 44.88.555. Servicing of guaranteed loans.
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Sec. 44.88.555. Servicing of guaranteed loans.
(a)The financial institution that holds a loan guaranteed by the authority under AS 44.88.500 — 44.88.599 shall
(1)service the loan;
(2)exercise diligence in collecting amounts due under the loan; and
(3)comply with all requirements of the loan guarantee agreement.
(b)Amounts received toward satisfaction of a default on a loan guaranteed under AS 44.88.500 — 44.88.599 shall be allocated between the lender and the fund according to the guaranteed percentage of the loan until the principal balance and accrued interest have been repaid.