Section 3.75.045. Lending practices.

	(a)  A loan will not be approved for refinancing of debt of an existing loan, the proceeds of which were used to purchase or install capstone avionics equipment described in 3 AAC 75.025.  
	(b)  A loan may be approved under AS 44.33.650 - 44.33.690 and this chapter for capstone avionics equipment purchased and installed not more than 120 days before receipt of the application by the department.  
	(c)  The interest rate for the loan program is four percent.  
	(d)  A loan for the purchase and installation of capstone avionics equipment will be made only if the aircraft or lease is in the name of the applicant and the equipment to be purchased is offered as security for the loan.  
	(e)  If the lease agreement expires during the term of the loan, the borrower has 120 days to pay the loan in full, or provide proof of lease renewal or purchase of aircraft. If the borrower fails, during the 120-day period, to pay the loan in full or provide proof of lease renewal or purchase of the aircraft, the department will consider the loan to be in default.  

Authorities

44.33.660;44.33.665

Notes

Authority

AS 44.33.660 AS 44.33.665

History

Eff. 8/22/2008, Register 187; am 10/30/2010, Register 196