Section 3.103.130. Guarantee fees.

	(a)  For any financing under the Arctic infrastructure development program and fund that is in the form of a guarantee, the applicant must pay the authority a guarantee fee in the amount the authority in its discretion determines to be appropriate. The authority will inform the applicant of the guarantee fee in the commitment letter issued for a guaranty.  
	(b)  The authority may set the guarantee fee as a one-time fixed amount, a one-time percentage of the amount guaranteed, a recurring annual fixed amount, a recurring annual percentage of the amount guaranteed, or a combination of these kinds of amounts. In setting a guarantee fee, the authority will consider the following:  
		(1) the amount and duration of the guarantee and any other conditions of the guarantee;  
		(2) the nature and credit standing of the applicant;  
		(3) the nature and economic and financial viability of the infrastructure development;  
		(4) the security provided to the authority for the issuance of the guaranty;  
		(5) the risk to the authority in providing the guaranty;  
		(6) the financial benefit the applicant or the Arctic infrastructure development receives from the authority's guaranty; and  
		(7) any other commercially reasonable factors the authority determines to have a bearing on setting the guarantee fee.  
	(c)  In setting the fee for a guarantee under this section, the authority may treat more favorably than otherwise would be the case an Arctic infrastructure development that will provide employment in an area of chronic or high unemployment.  

Authorities

44.88.085;44.88.800;44.88.820;44.88.830

Notes

Authority

AS 44.88.085 AS 44.88.800 AS 44.88.820 AS 44.88.830 Editor's note: Even though the adoption of 3 AAC 103.130 was effective 12/3/2015, it was not published until Register 218, July 2016.

History

Eff. 12/3/2015, Register 218

References

3.103.130