Sec. 44.88.530. Applicability of AS 44.88.535 - 44.88.560.
AS 44.88.535 - 44.88.560 apply to new loan guarantees and refinancing guarantees under AS 44.88.500 .
Sec. 44.88.535. Conditions of loan guarantee.
(a) The authority may guarantee a loan under AS 44.88.500 - 44.88.599 if the
(A) is commercially reasonable;
(B) contains payment provisions satisfactory to the authority;
(C) is secured by adequate collateral; however, the authority may waive on a case-by-case basis the requirement of collateral for a loan guarantee of $100,000 or less for which the proposed loan term does not exceed five years, but the ability to waive the requirement of this subparagraph or the grant of a waiver does not prevent the financial institution that holds the loan guaranteed by the authority from requiring reasonable collateral for the loan;
(2) borrower demonstrates the ability to repay the loan from either or both of the following:
(A) net cash flow from the borrower; and
(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 in the normal operation of a business within one year;
(3) term of the loan does not exceed 20 years;
(4) loan is originated with and serviced by a state chartered or federally chartered financial institution;
(5) portion of the loan not guaranteed by the authority is held by the originating financial institution or another institution approved by the authority;
(6) loan is made to a business with a majority interest held by state residents; and
(7) loan guarantee provides a benefit to the borrower.
(b) The authority may provide a guarantee of up to 80 percent of a loan that qualifies under AS 44.88.500 - 44.88.599. The ratio of the guarantee to the outstanding principal of the loan may not increase over the term of the loan.
(c) The authority may guarantee the payment of interest on the guaranteed portion of a loan
(1) in the manner established by the authority by regulation; and
(2) for a period of time not to exceed
(A) 90 days for loans or parts of loans not made to support an export transaction;
(B) 180 days for loans or parts of loans made for a post-shipment loan guarantee to support an export transaction; in this subparagraph, "post-shipment loan guarantee" means a guarantee, or portion of a guarantee, that becomes effective after the export contract date that shipment of the related goods or raw materials or provision of the related services begins; or
(C) 270 days for loans or parts of loans made for a pre-shipment loan guarantee to support an export transaction; in this subparagraph, "pre-shipment loan guarantee" means a guarantee, or part of a guarantee, that becomes effective before the export contract date that shipment of the related goods or raw materials or provision of the related services begins.
Sec. 44.88.540. Limitations of guarantees.
The authority may not issue a total of more than
(1) $50,000,000 of loan guarantees;
(2) $25,000,000 of loan guarantees in which the amount of the loan guarantee exceeds $500,000.
Sec. 44.88.542. Discounted loan purchases. [Repealed, Sec. 21 ch 111 SLA 1996].
Repealed or Renumbered
Sec. 44.88.545. Limitations of guarantees with respect to borrowers.
The authority may not provide a guarantee
(1) of more than $1,000,000;
(2) to an individual borrower that cumulatively, with the outstanding principal balance of other authority guaranteed indebtedness of that borrower, exceeds $1,000,000.
Sec. 44.88.550. Interest on guaranteed loan.
(a) The maximum interest rate that may be charged by a financial institution on a loan guaranteed by the authority is two and three-quarters percentage points above the prime rate.
(b) If provision is made in the loan guarantee agreement, the interest rate on a loan guaranteed by the authority may increase or decrease in accordance with the changes in the prime rate.
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.
Sec. 44.88.560. Powers of the authority.
The authority may
(1) adopt regulations to implement AS 44.88.500 - 44.88.599;
(2) establish terms and conditions for loan guarantees and refinancing agreements subject to the requirements of AS 44.88.500 - 44.88.599;
(3) make and execute contracts and other instruments to implement AS 44.88.500 - 44.88.599;
(4) charge reasonable fees that the authority may establish by regulation for the service it provides under AS 44.88.500 - 44.88.599;
(5) acquire real or personal property by purchase, transfer, or foreclosure when the acquisition is necessary to protect the authority's interest in a loan or a loan guarantee;
(6) exercise any other power necessary to implement AS 44.88.500 - 44.88.599; and
(7) to the extent the authority considers it to be in its best interest to do so, use money to pay expenses relating to the liquidation of collateral securing loans guaranteed by the authority.
Sec. 44.88.570. Distribution of loans.
The authority shall distribute guarantees of new loans and guarantees of loans made to refinance existing loans under AS 44.88.500 - 44.88.599 to all regions of the state in an equitable manner.
Sec. 44.88.599. Definitions.
In AS 44.88.500 - 44.88.599
(1) "export transaction" means a contract for the sale of goods, services, or raw materials that includes a term that requires the goods, services, or raw materials, in whole or in part, to be shipped to or provided in a foreign country.
(2) "prime rate" means the lowest United States money center prime rate of interest that is published in the Wall Street Journal.
Article 07. RURAL DEVELOPMENT INITIATIVE FUND
Sec. 44.88.600. Rural development initiative fund.
The rural development initiative fund is created in the authority outside of the revolving fund. The rural development initiative fund is a fund for the uses and purposes of AS 44.88.600 - 44.88.620. The rural development initiative fund consists of money or assets appropriated or transferred to the authority for the purposes of this section, and of loan repayments, interest, or other income earned on loans or investments of the fund. In addition, the authority may deposit other assets into the fund if the total value of those deposits does not exceed $2,000,000. The authority, in its discretion, may transfer money or other assets from the rural development initiative fund to the revolving fund.
Sec. 44.88.610. Rural development loans.
(a) The authority may use money from the rural development initiative fund to make loans of up to $150,000 to a person, or loans of up to $300,000 to two or more persons, to be used for working capital, equipment, construction, or other commercial purposes by a business located in a community with a population of 5,000 or less that is not connected by road or rail to Anchorage or Fairbanks, or with a population of 2,000 or less that is connected by road or rail to Anchorage or Fairbanks. For purposes of this subsection,
(1) "community" means a city as defined in AS 29.71.800 or a place in the unorganized borough that is not incorporated as a city and in which 25 or more individuals reside as a social unit; and
(2) "connected by road" does not include a connection by the Alaska marine highway system.
(b) The authority shall require collateral for each loan made under this section and shall require that a reasonable amount of money from other nonstate sources be committed for use on any project or enterprise for which money from a loan will be used. The authority by regulation may establish other conditions for loans. The authority shall by regulation establish rates of interest that are not less than four percent a year and terms of repayment for loans made under this section.
Sec. 44.88.620. Disposal of property acquired by default or foreclosure.
The authority shall dispose of property acquired through default or foreclosure of a loan made from the rural development initiative fund. Disposal shall be made in a competitive manner that serves the best interests of the state, and may include the amortization of payments over a period of years. Proceeds from the disposal of property under this section shall be deposited into the fund.
Article 08. GENERAL PROVISIONS
Sec. 44.88.900. Definitions.
In this chapter,
(1) "authority" means the Alaska Industrial Development and Export Authority created by this chapter;
(2) "business enterprise" means a single proprietorship, cooperative, corporation, firm, partnership, or other association of persons organized in any manner, for any credit worthy business purpose;
(3) "development project" has the meaning given to "project" in (9)(A) and (D) - (F) of this section;
(4) "federal agency" means the United States and any officer, department, agency or instrumentality of the United States;
(5) "governing body of a political subdivision" means, when used with respect to the location of a project, the council of a city if the project is to be located in a city in the unorganized borough, or the assembly if the project is to be located in an organized borough or a unified municipality;
(6) "lease" includes, when used as a noun, an interest in, or when used as a verb, the transfer of an interest in, property less than fee simple title, including, without limitation, when used as a noun, agreements to use or occupy property;
(7) "loan participation" means the purchase of a portion of a loan from a financial institution if
(A) the financial institution has obtained a commitment from the authority to purchase the portion of that loan before the financial institution has disbursed money as part of the loan to the borrower; or
(B) the authority determines that purchasing a portion of a preexisting loan will resolve lending limits or reserve restrictions imposed on the financial institution by law or a state or federal regulatory agency, or by the financial institution if the internal lending limit or reserve restriction is acceptable to the authority;
(8) "plant" or "facility" means real property, whether above or below mean high water, or an interest in it, and the buildings, improvements and structures constructed or to be constructed on or in it, and may include fixtures, machinery, and equipment on it or in it, and tangible personal property, regardless of whether the tangible personal property is attached to or connected with real property, if the owner has agreed not to remove the tangible personal property permanently from the state for the period the authority sets; "plant" or "facility" does not include work in process or stock in trade;
(9) "project" means
(A) a plant or facility used or intended for use in connection with making, processing, preparing, transporting, or producing in any manner, goods, products, or substances of any kind or nature or in connection with developing or utilizing a natural resource, or extracting, smelting, transporting, converting, assembling, or producing in any manner, minerals, raw materials, chemicals, compounds, alloys, fibers, commodities and materials, products, or substances of any kind or nature;
(B) a plant or facility used or intended for use in connection with a business enterprise;
(C) commercial activity by a business enterprise;
(D) a plant or facility demonstrating technological advances of new methods and procedures and prototype commercial applications for the exploration, development, production, transportation, conversion, and use of energy resources;
(E) infrastructure for a new tourism destination facility or for the expansion of a tourism destination facility; in this subparagraph, "tourism destination facility" does not include a hotel or other overnight lodging facility;
(F) a plant or facility, other than a plant or facility described in (D) of this paragraph, for the generation, transmission, development, transportation, conversion, or use of energy resources;
(10) "project applicant" means a business enterprise or enterprises proposing to
(A) use or occupy a project; or
(B) agree to permit others to use or occupy a project;
(11) "project cost" or "cost of a project" means all or any part of the aggregate costs determined by the authority to be necessary to finance the construction, expansion, or acquisition of a project, including without limitation the cost of acquiring real or tangible personal property, and, in connection with real property, the cost of constructing buildings and improvements, the cost of constructing means of access to and from the project, the cost of constructing extensions of utility systems to the site of the project; the cost of a project includes, without limitation, the cost of financing the project, interest charges before, during or after construction, expansion, or acquisition of the project, costs related to the determination of the feasibility, planning, design or engineering of the project and, to the extent determined necessary by the authority, administrative expenses, the cost of machinery or equipment to be used in the operation of the project and expenses of installation, replacement or rehabilitation, and all other costs, charges, fees and expenses which may be determined by the authority to be necessary to finance the construction, expansion, or acquisition;
(12) "real property" means land and rights and interests in land, including, without limitation, interests less than full title such as easements, uses, leases, and licenses;
(13) "revolving fund" means the Alaska Industrial Development and Export Authority revolving fund created in AS 44.88.060 ;
(14) "trade secret" has the meaning given in AS 45.50.940 .
Article 01. MISCELLANEOUS PROVISIONS
Sec. 44.99.001. [Renumbered as AS 28.90.040 ].
Repealed or Renumbered
Sec. 44.99.002. Employment of radio stations.
The governor may employ one or more radio stations, located south of the Gulf of Alaska and suitable for distribution of news, executive proclamations and inquiries, information concerning the state, general information, and other matters suitable for broadcasting that the governor prescribes and that may be of service and benefit to the people to be served.