CSHB 261(FSH): "An Act relating to loans for the purchase of commercial fishing entry permits; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 261(FSH) 01 "An Act relating to loans for the purchase of commercial fishing entry permits; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 16.10.320(a) is amended to read: 05 (a) Except as permitted in (h) and (l) of this section, a loan under AS 06 16.10.300 - 16.10.370 07 (1) may not exceed a term of 15 years, except for extensions under AS 08 16.10.310(a)(4); 09 (2) may not bear interest exceeding the prime rate, as defined by AS 10 44.88.599, plus two percentage points, but not more than 10 1/2 percent; 11 (3) must be secured by a first priority lien and appropriate security 12 agreement; 13 (4) may not exceed 80 percent of the appraised value of the collateral 14 used to secure the loan; and
01 (5) may not be made to a person who has a past due child support 02 obligation established by court order or by the child support services agency under AS 03 25.27.160 - 25.27.220 at the time of application. 04 * Sec. 2. AS 16.10.320(d) is amended to read: 05 (d) The total of balances outstanding on loans made to a borrower under AS 06 16.10.310(a)(1)(A) may not exceed $300,000. The total of balances outstanding on 07 loans made to a borrower under AS 16.10.310(a)(1)(B) may not exceed $200,000 for 08 the purchase of an entry permit and may not exceed $100,000 for all other loans 09 under that subparagraph. The total of balances outstanding on loans made to a 10 borrower under AS 16.10.310(a)(1)(C) may not exceed $300,000. The total of 11 balances outstanding on loans made to a borrower under AS 16.10.310(a)(1)(D) to 12 satisfy past due federal tax obligations may not exceed $35,000. The total of balances 13 outstanding on loans made under AS 16.10.310(a)(1)(E) may not exceed $2,000,000 14 for each community eligible under federal statute or regulation to establish or 15 participate in the establishment of a community quota entity. The total of balances 16 outstanding on loans made to a borrower under AS 16.10.310(a)(1)(F) may not exceed 17 $300,000. Excluding loans made under AS 16.10.310(a)(1)(E), the total of balances 18 outstanding on all loans, including debt refinancing under AS 16.10.310(a), made to a 19 borrower under AS 16.10.300 - 16.10.370 may not exceed $400,000. 20 * Sec. 3. AS 16.10.320(i) is amended to read: 21 (i) If a loan is made to a borrower under AS 16.10.310(a)(1)(A), a subsequent 22 loan may not be made to the borrower under AS 16.10.310(a)(1)(B), unless the loan 23 requested under AS 16.10.310(a)(1) is for propulsion engine or generator engine 24 replacement on an existing vessel for the purpose of improving fuel efficiency or is 25 for the purchase of an entry permit. If a loan is made to a borrower under AS 26 16.10.310(a)(1)(B), a subsequent loan may be made to the borrower under AS 27 16.10.310(a)(1)(A) if the total of the balance outstanding on loans received by the 28 borrower under AS 16.10.310(a)(1)(A) and (B) does not exceed $400,000. 29 * Sec. 4. AS 16.10.320 is amended by adding a new subsection to read: 30 (l) A loan under AS 16.10.310(a)(1)(B) for the purchase of an entry permit 31 may not bear interest exceeding the prime rate, as defined in AS 44.88.599, minus two
01 percentage points, except that the interest rate may not be more than 10 1/2 percent or 02 less than three percent. 03 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 APPLICABILITY. (a) The increase in balances outstanding permitted by AS 06 16.10.320(d), as amended by sec. 2 of this Act, on loans made to a borrower under AS 07 16.10.310(a)(1)(B), applies only to a person who first receives a loan under AS 08 16.10.310(a)(1)(B) on or after the effective date of this Act. 09 (b) AS 16.10.320(l), added by sec. 4 of this Act, 10 (1) applies only to loans made on or after the effective date of this Act; and 11 (2) does not apply to the refinancing of a loan made under 16.10.310 - 12 16.10.370 before the effective date of this Act. 13 * Sec. 6. This Act takes effect July 1, 2012.