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Alaska Administrative Code (Last Updated: January 12, 2017) |
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Title 3. Commerce, Community, and Economic Development. |
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Part 3.1. Banking, Securities, Small Loans and Corporations. |
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Chapter 3.74. Alaska Microloan Revolving Loan Fund. |
Section 3.74.045. Lending practices.
Latest version.
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(a) The proceeds of the loan may be used by the borrower for working capital, equipment, construction, or other commercial purposes relating to the borrower's business. (b) A loan will not be approved for refinancing long-term debt. Interim or construction financing is not considered long-term debt if the term is less than the longer of 12 months or the length of actual construction and the earliest promissory note or other document evidencing the creation of the debt was executed less than six months before receipt of the application by the department. (c) Loan proceeds may not be used to reimburse an applicant for purchases more than six months before receipt of the application by the department. (d) The department will set the interest rate for loans under this chapter on the first day of each calendar quarter. The interest rate set for a quarter remains in effect until the department changes the rate, will not exceed the maximum or minimum interest allowed under AS 44.33.965(b)(2), and will be established at the nearest one-quarter point. The interest rate will be based on the prime rate, as defined in AS 44.88.599, during the previous quarter. (e) The interest rate for a loan is the interest rate in effect at the time the loan commitment is made. The interest rate for a loan will be at a fixed rate for the term of the loan.
Authorities
44.33.955;44.33.965