CSHB 412(FIN): "An Act establishing the Alaska microloan revolving fund; making loans for commercial purposes from the fund; relating to the fund and loans; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 412(FIN) 01 "An Act establishing the Alaska microloan revolving fund; making loans for 02 commercial purposes from the fund; relating to the fund and loans; and providing for 03 an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 44.33 is amended by adding new sections to read: 06 Article 15. Alaska Microloan Revolving Fund. 07 Sec. 44.33.950. Alaska microloan revolving fund. (a) There is created within 08 the Department of Commerce, Community, and Economic Development a revolving 09 loan fund to be known as the Alaska microloan revolving fund to carry out the 10 purposes of AS 44.33.950 - 44.33.990. 11 (b) The Alaska microloan revolving fund consists of the following: 12 (1) money appropriated to, transferred to, or received by gift, devise, 13 bequest, or donation to the fund; 14 (2) principal and interest payments or other income earned on loans or
01 investments of the fund; 02 (3) money chargeable to principal or interest that is collected through 03 liquidation by foreclosure or other process on loans made under AS 44.33.950 - 04 44.33.990. 05 (c) Money in the fund may be used by the legislature to make appropriations 06 for costs of administering AS 44.33.950 - 44.33.990. 07 Sec. 44.33.955. Powers and duties of the department. The department may 08 (1) make loans to eligible applicants under AS 44.33.960 to be used for 09 working capital, equipment, construction, or other commercial purposes by a business 10 located in the state; 11 (2) receive, take, hold, and administer any appropriation, gift, grant, 12 bequest, devise, or donation of money for the fund; 13 (3) establish amortization plans for repayment of loans, including 14 extensions of the terms of loans; 15 (4) allow an assumption of a loan if 16 (A) the applicant meets the requirements established under this 17 section; and 18 (B) approval of the assumption would be consistent with the 19 purposes of this section; 20 (5) establish the rate of interest for loans consistent with law; 21 (6) charge and collect fees for services provided under AS 44.33.950 - 22 44.33.990; 23 (7) adopt regulations under AS 44.62 necessary to carry out the 24 provisions of AS 44.33.950 - 44.33.990, including regulations to establish reasonable 25 fees for services provided; and 26 (8) designate agents and delegate powers as necessary to the agents. 27 Sec. 44.33.960. Eligibility. (a) For an applicant to be eligible for a loan under 28 AS 44.33.950 - 44.33.990, the applicant must 29 (1) be a resident of the state as determined under (b) of this section; 30 and 31 (2) provide a reasonable amount of money from other nonstate sources
01 for use on any project or enterprise for which money from a loan will be used. 02 (b) To meet the residency requirements of (a) of this section, the applicant 03 (1) must physically reside in this state and maintain a domicile in this 04 state during the 12 consecutive months before the date of application for the program; 05 and 06 (2) may not have 07 (A) declared or established residency in another state; or 08 (B) received residency or a benefit based on residency from 09 another state in the previous 12 months. 10 Sec. 44.33.965. Limitations on loans. (a) The department may use money 11 from the Alaska microloan revolving fund to make loans of up to $35,000 to a person, 12 or loans of up to $70,000 to two or more persons. 13 (b) A loan established under AS 44.33.950 - 44.33.990 14 (1) may not exceed a term of six years, except for extensions 15 authorized under AS 44.33.955 or regulations adopted under AS 44.33.955; 16 (2) may not bear interest exceeding the prime rate, as defined in 17 AS 44.88.599, plus one percentage point, but interest may not be less than six percent 18 a year; 19 (3) must be secured by collateral acceptable to the commissioner; and 20 (4) may not be made to a person who has a past due child support 21 obligation established by court order or by the child support services agency under 22 AS 25.27.160 - 25.27.220 at the time of application. 23 Sec. 44.33.970. Special account established. (a) There is established as a 24 special account within the Alaska microloan revolving fund the foreclosure expense 25 account. 26 (b) The department may expend money credited to the foreclosure expense 27 account when necessary to protect the state's security interest in collateral on loans 28 granted under AS 44.33.965 or to defray expenses incurred during foreclosure 29 proceedings after a default by an obligor. 30 Sec. 44.33.975. Disposal of property acquired by default or foreclosure. 31 The department shall dispose of property acquired through default or foreclosure of a
01 loan made under AS 44.33.950 - 44.33.990. Disposal must be made in a manner that 02 serves the best interest of the state and may include the amortization of payments over 03 a period of years. 04 Sec. 44.33.990. Definitions. In AS 44.33.950 - 44.33.990, unless the context 05 otherwise requires, 06 (1) "commissioner" means the commissioner of commerce, 07 community, and economic development; 08 (2) "department" means the Department of Commerce, Community, 09 and Economic Development. 10 * Sec. 2. The uncodified law of the State if Alaska is amended by adding a new section to 11 read: 12 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 13 Economic Development may immediately proceed to adopt regulations under AS 44.62 14 (Administrative Procedure Act) necessary to implement the changes made in sec. 1 of this 15 Act. The regulations take effect under AS 44.62 but not before July 1, 2010. 16 * Sec. 3. Section 2 of this Act takes effect immediately under AS 01.10.070(c). 17 * Sec. 4. Except as provided in sec. 3 of this Act, this Act takes effect July 1, 2010.