Section 11.39.511. Interest credit for borrowers who maintain good financial standing.

	(a)  At least annually the board will establish an interest credit rate to encourage the prompt payment of loans under AS 03.10.050. Unless precluded by AS 03.10.050(f), the board may approve interest credit on a loan granted under this chapter. The interest credit granted may not reduce the fixed rate to less than five percent a year.  
	(b)  Each calendar year, the board will approve existing borrowers for interest credit who are in good financial standing and eligible under AS 03.10.050 for interest credits. The board may approve a new borrower for interest credits when the board approves the loan.  
	(c)  A borrower who no longer is in good financial standing or becomes ineligible for interest credit under AS 03.10.050 will not be granted any further interest credits for the remainder of the calendar year.  
	(d)  A credit will be applied each time a full loan payment is received if received within 30 days after the payment is due. A credit will only apply to the amount of interest due on a loan and will not reduce the amount of a payment.  
	(e)  A credit will not be transferred between loans or calendar years, or refunded to a borrower except for an overpayment of the total outstanding balance of the loan.  
	(f)  A borrower who assumes a loan under AS 03.10.050 may be granted a credit under this section if the borrower who assumes the loan is otherwise qualified.  

Authorities

03.09.040;03.10.020;03.10.050

Notes

Authority

AS 03.09.040 AS 03.10.020 AS 03.10.050 ________________________

History

Eff. 11/5/92, Register 124; am 6/1/2001, Register 158; am 10/27/2002, Register 164