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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 3.78. Alternative Energy Loans. |
Section 3.78.056. Lending practices.
Latest version.
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(a) A loan will not be approved for refinancing of long-term debt. Interim or construction financing is not considered long-term debt if the term of the financing is 24 months or less and the proceeds of the financing were 100 percent used to purchase, install, construct, or complete alternative energy systems or energy conservation improvements described in AS 45.88.010 - 45.88.090. (b) A loan may be approved under AS 45.88.010 - 45.88.090 and this chapter for alternative energy systems or energy conservation improvements purchased, installed, or constructed not more than 120 days before receipt of the application by the department. (c) An applicant will be considered eligible to apply for a loan in excess of $30,000 if the department receives acceptable documentation that the applicant has been denied a loan for the same project or the financial institution is unwilling to fund the entire project. (d) A borrower may not modify, sell, or otherwise dispose of a structure or improvement financed, in whole or part, with loan money in any manner during the life of the loan without prior written approval of the department. (e) A loan to purchase, install, construct, or complete alternative energy systems or energy conservation improvements must establish to the satisfaction of the department that the project to be financed with the loan will result in alternative energy production and energy conservation permissible and defined in AS 45.88.010 - 45.88.090. (f) 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, and will not be less than five percent per year. The interest rates set by the department are based on the bank prime rate listed in the Wall Street Journal during the previous quarter, plus one percentage point. (g) A loan under this chapter may only include items directly related to alternative energy systems or energy efficiency improvements.