2018 Alaska Statutes
Title 44. State Government
Chapter 88. Alaska Industrial Development and Export Authority
Article 9. New Markets Tax Credit Assistance Guarantee and Loan Program.
Sec. 44.88.730. Conditions of loan guarantee.
(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.
