Sec. 44.88.700. New markets tax credit assistance guarantees and loans.
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Sec. 44.88.700. New markets tax credit assistance guarantees and loans.
(a)Subject to the requirements of AS 44.88.700 — 44.88.799, the authority may
(1)guarantee new markets tax credit assistance leveraged loans; and
(2)make new markets tax credit assistance leveraged loans.
(b)New markets tax credit assistance guarantees and loans are limited to projects in the state for which new markets tax credits are allocated by a qualified community development entity.
(c)The authority shall determine that the project will promote economic development in the state before guaranteeing a leveraged loan or making a leveraged loan under AS 44.88.700 — 44.88.799.
(d)The authority may agree to restrictions and guidelines arising from the federal new markets tax credit program, including, for the seven-year tax credit period of the new markets tax credit project,
(1)that interest only payments be made on the leveraged loan;
(2)that substantially all capital remain invested in the project;
(3)that acceptable collateral may be an interest in a qualified community development entity or an investment entity rather than in the project; and
(4)substantive restrictions on foreclosure of collateral.