Section 3.80.235. Lending practices.

	(a)  A loan will not be approved for refinancing long-term debt. Interim financing is not considered long-term debt if the term is 12 months or less and the promissory note or the original agreement was executed less than 12 months before the department received the application.  
	(b)  In determining the maximum loan amount that may be approved for the purchase of quota shares, the department will rely on market analysis through appropriate sources as determined by the department.  
	(c)  Loan proceeds may not be used to reimburse an applicant for the purchase of quota shares if they were purchased more than 12 months before receipt of the application by the department.  
	(d)  The department will set the interest rate for loans under 3 AAC 80.200 - 3 AAC 80.265 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

16.10.310;16.10.320

Notes

Authority

AS 16.10.310 AS 16.10.320

History

Eff. 10/16/2012, Register 204