Sec. 44.88.730. Conditions of loan guarantee.

194 words·~1 min read·/ak/title-44/chapter-88/44-88-730

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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.