Section 3.80.345. Lending practices.

	(a)  Except as provided in AS 16.10.805(1)(B), a loan will not be approved for refinancing long-term debt. Interim financing is not considered long-term debt if the term is 24 months or less and the promissory note or the original agreement was executed less than 12 months before the department receives the application.  
	(b)  A loan will not be approved if its primary purpose would be to  
		(1) speculate in the acquisition and sale of charter halibut permits, vessels, or gear;  
		(2) lease out a charter halibut permit; or  
		(3) purchase a charter halibut permit, vessel, or gear, that will not be put to use in the fishing season immediately following the loan approval date.  
	(c)  In determining the maximum loan amount that may be approved for the purchase of a charter halibut permit, the department will rely on transfer information from the National Marine Fisheries Service or its successors, or other appropriate sources as determined by the department.  
	(d)  A loan for the refinance of a charter halibut fishing vessel will not be approved unless the applicant has permanent access to a charter halibut permit and the primary use of the vessel will be commercial charter fishing.  
	(e)  Loan proceeds may not be used to reimburse an applicant for the purchase of charter halibut permits if the permits were purchased more than 12 months before the department received the application.  
	(f)  The department will set the interest rate for loans under 3 AAC 80.310 - 3 AAC 80.380 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 16.10.815(a)(4), and will be established at the nearest one-quarter point. The interest rate will be based on the bank prime rate, as defined in AS 44.88.599, during the previous quarter.  
	(g)  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

16.10.805;16.10.815

Notes

Authority

AS 16.10.805 AS 16.10.815

History

Eff. 10/16/2012, Register 204