HB 342: "An Act transferring certain loan programs administered by the Department of Commerce, Community, and Economic Development to the Alaska Industrial Development and Export Authority; relating to the community quota entity revolving loan fund, commercial fishing revolving loan fund, fisheries enhancement revolving loan fund, commercial charter fisheries revolving loan fund, mariculture revolving loan fund, Alaska capstone avionics revolving loan fund, Alaska microloan revolving loan fund, and the alternative energy conservation revolving loan fund; and providing for an effective date."
00 HOUSE BILL NO. 342 01 "An Act transferring certain loan programs administered by the Department of 02 Commerce, Community, and Economic Development to the Alaska Industrial 03 Development and Export Authority; relating to the community quota entity revolving 04 loan fund, commercial fishing revolving loan fund, fisheries enhancement revolving loan 05 fund, commercial charter fisheries revolving loan fund, mariculture revolving loan fund, 06 Alaska capstone avionics revolving loan fund, Alaska microloan revolving loan fund, 07 and the alternative energy conservation revolving loan fund; and providing for an 08 effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 16.10.310(a) is amended to read: 11 (a) The authority [DEPARTMENT] may 12 (1) make loans
01 (A) to individual commercial fishermen who have been state 02 residents for a continuous period of two years immediately preceding the date 03 of application for a loan under AS 16.10.300 - 16.10.370, who have had an 04 annual crewmember or commercial fishing license under AS 16.05.480 or a 05 permit under AS 16.43 for the year immediately preceding the date of 06 application and any other two of the past five years, and who actively 07 participated in the fishery during those periods 08 (i) for the purchase of entry permits; 09 (ii) to upgrade existing vessels and gear for the purpose 10 of improving the quality of Alaska seafood products; or 11 (iii) for propulsion engine or generator engine 12 replacements on existing vessels for the purpose of improving fuel 13 efficiency; 14 (B) to an individual for the repair, restoration, or upgrading of 15 existing vessels and gear, for the purchase of entry permits and gear, and for 16 the construction and purchase of vessels, if the individual has been a state 17 resident for a continuous period of two years immediately preceding the date 18 of application for a loan under AS 16.10.300 - 16.10.370, is not eligible for 19 financing from a state financial institution as defined in AS 06.01.050, a 20 federally chartered financial institution, or the Commercial Fishing and 21 Agricultural Bank, and 22 (i) because of lack of training or lack of employment 23 opportunities in the area of residence, does not have occupational 24 opportunities available other than commercial fishing; or 25 (ii) is economically dependent on commercial fishing 26 for a livelihood and for whom commercial fishing has been a traditional 27 way of life in Alaska; 28 (C) for the purchase of quota shares for fisheries in or off the 29 state by individual commercial fishermen who 30 (i) have been state residents for a continuous period of 31 two years immediately preceding the date of application for a loan
01 under AS 16.10.300 - 16.10.370; 02 (ii) for any two of the past five years, possessed an 03 annual crewmember or commercial fishing license under AS 16.05.480 04 or a permit under AS 16.43 and actively participated in a fishery for 05 which the license or permit was issued; 06 (iii) qualify as transferees for quota shares under 07 applicable law; and 08 (iv) are not eligible for financing from other recognized 09 commercial lending institutions to purchase quota shares; 10 (D) to an individual commercial fisherman to satisfy past due 11 federal tax obligations, if the fisherman has been a state resident for a 12 continuous period of two years immediately preceding the date of application 13 for the loan, has filed past and current federal tax returns with the federal 14 government, has executed an agreement with the federal government for 15 repayment of past due federal tax obligations, and either 16 (i) because of lack of training or lack of employment 17 opportunities in the area of residence, does not have occupational 18 opportunities available other than commercial fishing; or 19 (ii) is economically dependent on commercial fishing 20 for a livelihood and for whom commercial fishing has been a traditional 21 way of life in Alaska; 22 (E) for the purchase of fishing quota shares by a community 23 quota entity eligible under federal statute or regulation to purchase the fishing 24 quota shares if the community quota entity is not eligible or qualified for 25 financing from other recognized commercial lending institutions to purchase 26 the fishing quota shares; 27 (F) to an individual for the upgrade of existing tender vessels 28 and gear to improve the quality of Alaska seafood products, if the individual 29 has been a state resident for a continuous period of two years immediately 30 preceding the date of application for a loan under AS 16.10.300 - 16.10.370; 31 (2) designate agents and delegate its powers to them as necessary;
01 (3) adopt regulations necessary to carry out the provisions of 02 AS 16.10.300 - 16.10.370, including regulations to establish reasonable fees for 03 services provided; 04 (4) establish amortization plans for repayment of loans, which may 05 include extensions for poor fishing seasons or for adverse market conditions for 06 Alaska products; 07 (5) enter into agreements with private lending institutions, other state 08 agencies, or agencies of the federal government to carry out the purposes of 09 AS 16.10.300 - 16.10.370; 10 (6) enter into agreements with other agencies or organizations to create 11 an outreach program to make loans under AS 16.10.300 - 16.10.370 in rural areas of 12 the state; 13 (7) allow an assumption of a loan if 14 (A) the applicant has been a state resident for a continuous 15 period of two years immediately preceding the date of the request for an 16 assumption; and 17 (B) approval of the assumption would be consistent with the 18 purposes of AS 16.10.300; an applicant for a loan assumption may not be 19 disqualified because the applicant does not meet the loan eligibility 20 requirements of (1) of this subsection; 21 (8) prequalify loan applicants for a limited entry permit loan or a quota 22 shares loan and charge a fee not to exceed $200 for prequalification; 23 (9) charge and collect the fees established under this subsection; 24 (10) refinance a debt obligation incurred by a borrower or borrowers 25 under this section if the borrower or borrowers otherwise qualify for a loan under 26 AS 16.10.300 - 16.10.370; 27 (11) refinance debt obligations, not to exceed $200,000, incurred by a 28 borrower or borrowers for the purchase of a commercial fishing vessel or gear if the 29 borrower or borrowers otherwise qualify for a loan under AS 16.10.300 - 16.10.370; 30 the authority [DEPARTMENT] may collect a refinancing loan origination charge as 31 provided by regulation.
01 * Sec. 2. AS 16.10.310(c) is amended to read: 02 (c) In determining whether an individual commercial fisherman is reasonably 03 likely to be able to repay a loan made under AS 16.10.300 - 16.10.370, the authority 04 [COMMISSIONER] shall consider the individual commercial fisherman's income 05 from commercial fishing and from all other sources. 06 * Sec. 3. AS 16.10.320(b) is amended to read: 07 (b) A lien in favor of the state is not required for loans guaranteed fully by the 08 federal government under 46 U.S.C. 1271 - 1279b (Federal Ship Financing Act of 09 1972), as amended. In the case of a security agreement given to secure a loan made 10 under AS 16.10.300 - 16.10.370 and covering a vessel documented under the laws of 11 the United States and so long as 46 U.S.C. 911 - 984 (Ship Mortgage Act, 1920) as 12 amended, and 46 U.S.C. 801 - 842 (Shipping Act, 1916), as amended, remain 13 ambiguous with respect to whether or not a state or state agency qualifies as a citizen 14 of the United States for purposes of those Acts, the first lien requirement of this 15 section may be satisfied by the recordation and endorsement of a first preferred ship 16 mortgage under 46 U.S.C. 911 - 984, and by perfection of a security interest under 17 AS 45.29 (Uniform Commercial Code - Secured Transactions), if the approval of the 18 Secretary of Transportation is obtained under 46 U.S.C. 839 for the transfer to the 19 authority [DEPARTMENT] of the interest in a vessel documented under the laws of 20 the United States. In the case of a security agreement given to secure a loan made 21 under AS 16.10.300 - 16.10.370 and covering a vessel documented under the laws of 22 the United States, the first lien requirement of this section may also be satisfied by use 23 of a trust deed and bond issued under it, if the trustee is a citizen of the United States 24 and obtains a first preferred ship mortgage on the vessel under 46 U.S.C. 911 - 984, 25 and the approval of the Secretary of Transportation is obtained under 46 U.S.C. 839 26 and 961 for the transfer of the bond or bonds to the authority [DEPARTMENT] if the 27 trustee is not a trustee approved by the Secretary of Transportation under 46 U.S.C. 28 808, 835, and 961. 29 * Sec. 4. AS 16.10.320(l) is amended to read: 30 (l) Until a community quota entity has used loans under this subsection to 31 purchase fishing quota shares cumulatively authorizing a total take of 50,000 pounds,
01 a loan or a portion of a loan made to that community quota entity under 02 AS 16.10.310(a)(1)(E) may not exceed 95 percent of the appraised value of the 03 collateral used to secure the loan or a portion of the loan. A loan to a community quota 04 entity under AS 16.10.310(a)(1)(E) 05 (1) may not exceed a term of 25 years, except for extensions under 06 AS 16.10.310(a)(4); 07 (2) may not, alone or in combination with other loans to the 08 community quota entity under AS 16.10.310(a)(4), exceed $1,000,000 in loans to one 09 community quota entity; 10 (3) may have terms that allow for a community quota entity to defer 11 interest payments for up to two years; and 12 (4) is not eligible for refinancing by the authority [DEPARTMENT]. 13 * Sec. 5. AS 16.10.320(m) is amended to read: 14 (m) In this section, "cost of funds" means the true interest cost expressed as a 15 rate based on the prime rate plus one percentage point plus an additional percentage 16 determined by the authority [DEPARTMENT] to represent risk of loss, term of credit 17 facility, the allocable expense of operation, cost of issuance, and loan servicing costs. 18 * Sec. 6. AS 16.10.325 is amended to read: 19 Sec. 16.10.325. Guarantors. A person may act as guarantor if the borrower 20 has insufficient collateral to secure a loan for the purposes described in 21 AS 16.10.310(a)(1)(B) or (C). The loan agreement shall specifically describe the 22 property of the guarantor to be used as collateral by the borrower and shall be signed 23 by the guarantor and the borrower. The authority [DEPARTMENT] shall provide the 24 guarantor with a copy of all notices sent to the borrower by the authority 25 [DEPARTMENT]. If the loan is for the purchase of an entry permit or quota shares, 26 the guaranty by the guarantor may not constitute a lien, mortgage, or encumbrance on 27 or pledge of the entry permit or quota shares. 28 * Sec. 7. AS 16.10.333(b) is amended to read: 29 (b) Upon approval by the authority [COMMISSIONER], the permit to be 30 purchased may be pledged as security for a loan under (a) of this section, if 31 (1) the certificate for the pledged permit lists the authority
01 [COMMISSIONER] as the legal owner of the permit; 02 (2) the certificate for the pledged permit lists the debtor as the 03 equitable owner of the permit; 04 (3) all annual permit cards issued under the pledged permit list the 05 name of the debtor; 06 (4) all obligations and responsibilities of a permit owner are assumed 07 by the debtor; 08 (5) co-signers or other sureties for performance under the note are not 09 vested with any rights in the pledged permit and their obligation is limited to 10 satisfaction of the note and payment of costs directly incurred by the authority 11 [DEPARTMENT] in administering the loan. 12 * Sec. 8. AS 16.10.333(c) is amended to read: 13 (c) The authority [COMMISSIONER] is not liable for any act or omission 14 resulting from permit ownership nor will that act or omission affect the authority's 15 [COMMISSIONER'S] title to the permit or the authority's [COMMISSIONER'S] 16 rights under it. 17 * Sec. 9. AS 16.10.333(d) is amended to read: 18 (d) Upon satisfaction of the note by the debtor, the authority 19 [COMMISSIONER] shall certify to the commission that the note has been satisfied. 20 * Sec. 10. AS 16.10.335(a) is amended to read: 21 (a) If the debtor defaults upon a note for which a limited entry permit has been 22 pledged as security under AS 16.10.333 or 16.10.338, the authority 23 [COMMISSIONER] shall provide the debtor, by both certified and first class mail sent 24 to the debtor's last known address on file with the authority [COMMISSIONER], 25 with a notice of default that includes 26 (1) a description of the security given for the note including the 27 number assigned to the pledged permit by the commission; 28 (2) the date upon which the default occurred; 29 (3) the amount of the debtor's outstanding principal and interest as of 30 the date of the default notice, the total amount remaining on the note less unearned 31 interest, and the amount of daily interest;
01 (4) a statement that the debtor may, within 15 days after the postmark 02 date of the notice, request a hearing to submit evidence showing the debtor has not 03 defaulted; 04 (5) a statement that the note may be reinstated if it is brought current 05 within 120 days after the postmark date of the notice; 06 (6) a statement that, under AS 16.10.310(a)(4), the debtor may 07 reinstate the note by submitting to the authority [COMMISSIONER] a plan of 08 repayment if the authority [COMMISSIONER] accepts the debtor's plan of 09 repayment; 10 (7) the place where reinstatement of the note or payment in full may be 11 made; and 12 (8) a notice in at least 10-point bold type stating: IMPORTANT: 13 YOUR FAILURE TO REINSTATE OR PAY THIS NOTE IN FULL BY THE DATE 14 SPECIFIED WILL RESULT IN A FORFEITURE OF ALL RIGHTS TO THE 15 PERMIT AND THE POSSIBILITY OF LEGAL ACTION BEING INSTITUTED 16 AGAINST YOU. 17 * Sec. 11. AS 16.10.335(b) is amended to read: 18 (b) In each case of a limited entry permit being pledged as security under 19 AS 16.10.333 or 16.10.338, the debtor shall maintain on file with the authority 20 [DEPARTMENT] an address where notice of default is to be sent, if necessary, and 21 where that notice will be timely received by the debtor. 22 * Sec. 12. AS 16.10.335(d) is amended to read: 23 (d) If requested by the debtor, the authority [COMMISSIONER] may waive 24 any of the time limits in (a) of this section for a period not to exceed 60 days if 25 (1) the debtor demonstrates good cause for the waiver; and 26 (2) the authority [COMMISSIONER] sets out in writing the reasons 27 for approving the waiver. 28 * Sec. 13. AS 16.10.337(a) is amended to read: 29 (a) Upon a foreclosure on an entry permit as provided in AS 16.10.335 or the 30 termination of a debtor's interest in an entry permit under AS 16.10.335(g), the 31 authority [COMMISSIONER] shall offer the commission a right of first refusal if the
01 permit is subject to a buy-back program under AS 16.43.290 - 16.43.330 at a price 02 equal to the amount outstanding on the note plus any costs the authority 03 [DEPARTMENT] directly incurred in administering the loan. 04 * Sec. 14. AS 16.10.337(b) is amended to read: 05 (b) If the commission does not exercise its right of first refusal within 30 days 06 after it receives the offer, or if the permit is not subject to a buy-back program under 07 AS 16.43.290 - 16.43.330, the authority [DEPARTMENT] shall advertise and sell the 08 permit. If the proceeds of the sale of a permit exceed the amount necessary to pay the 09 note in full, plus penalties, costs of administration of the note, attorney fees, and child 10 support liens of which the authority [DEPARTMENT] has notice, the excess shall be 11 transferred by the authority [COMMISSIONER] to the debtor. At any time until the 12 permit has been sold under this subsection, the debtor may repurchase the permit by 13 paying the authority [DEPARTMENT] the amount necessary to pay the note in full, 14 plus penalties, costs of administration of the note, and attorney fees, as determined by 15 the authority [COMMISSIONER]. 16 * Sec. 15. AS 16.10.337(d) is amended to read: 17 (d) Nothing in this section affects the right of the authority 18 [COMMISSIONER] to institute legal action for a deficiency resulting from a default 19 on a note given under AS 16.10.333. In addition to any deficiency, the debtor is liable 20 for the costs of administering the note and for costs and attorney fees. 21 * Sec. 16. AS 16.10.338(b) is amended to read: 22 (b) If a limited entry permit is pledged for security for a loan made under 23 AS 16.10.310(a)(1)(B) for the repair, restoration, upgrading, construction, or purchase 24 of a vessel and the borrower thereafter fails to make a payment or defaults, the 25 authority [COMMISSIONER] shall, in addition to the notice provided under 26 AS 16.10.335(a), notify the borrower that, subject to the authority's 27 [COMMISSIONER'S] acceptance, the borrower may sell the vessel, apply the sales 28 proceeds to the debt, and renegotiate payment of the balance due on the loan to avoid 29 the immediate loss of the limited entry permit that has been pledged for security for 30 the loan. 31 * Sec. 17. AS 16.10.338(c) is amended to read:
01 (c) If a limited entry permit is pledged for security for a loan made under 02 AS 16.10.310(a)(1)(C) for the purchase of quota shares and the borrower thereafter 03 fails to make a payment or defaults, the authority [COMMISSIONER] shall, in 04 addition to the notice provided under AS 16.10.335(a), notify the borrower that subject 05 to the authority's [COMMISSIONER'S] acceptance the borrower may sell the quota 06 shares, apply the sales proceeds to the debt, and renegotiate payment of the balance 07 due on the loan to avoid the immediate loss of the limited entry permit that has been 08 pledged for security for the loan. 09 * Sec. 18. AS 16.10.339 is amended to read: 10 Sec. 16.10.339. Regulations. The authority [DEPARTMENT] shall adopt 11 regulations to implement AS 16.10.333 - 16.10.337. 12 * Sec. 19. AS 16.10.340(c) is amended to read: 13 (c) If the authority [COMMISSIONER] determines that the fund contains 14 money that is excess to that needed under (a) and (b) of this section to carry out the 15 purpose of AS 16.10.300 - 16.10.370, then the authority [COMMISSIONER] may 16 use the excess money to carry out the purpose of AS 16.10.500 - 16.10.560. 17 * Sec. 20. AS 16.10.340(c), as amended by sec. 6, ch. 58, SLA 2012, is amended to read: 18 (c) If the authority [COMMISSIONER] determines that the fund contains 19 money that is excess to that needed to carry out the purpose of AS 16.10.300 - 20 16.10.370, then the authority [COMMISSIONER] may use the excess money to carry 21 out the purpose of AS 16.10.500 - 16.10.560. 22 * Sec. 21. AS 16.10.342(c) is amended to read: 23 (c) The authority [COMMISSIONER] may expend money credited to the 24 foreclosure expense account when necessary to protect the authority's [STATE'S] 25 security interest in collateral on loans granted under AS 16.10.300 - 16.10.370, except 26 loans under AS 16.10.310(a)(1)(E), or to defray expenses incurred during foreclosure 27 proceedings after a default by an obligor. 28 * Sec. 22. AS 16.10.342(c), as amended by sec. 8, ch. 58, SLA 2012, is amended to read: 29 (c) The authority [COMMISSIONER] may expend money credited to the 30 foreclosure expense account when necessary to protect the authority's [STATE'S] 31 security interest in collateral on loans granted under AS 16.10.300 - 16.10.370 or to
01 defray expenses incurred during foreclosure proceedings after a default by an obligor. 02 * Sec. 23. AS 16.10.345 is amended to read: 03 Sec. 16.10.345. Community quota entity revolving loan fund. (a) The 04 community quota entity revolving loan fund is created in the authority. The fund is 05 not an account in the revolving fund established in AS 44.88.060, and the 06 authority shall account for the fund separately from the revolving fund. The 07 authority [COMMISSIONER] may use the fund for loans made under 08 AS 16.10.310(a)(1)(E) after June 30, 2012, and before June 30, 2017, and for 09 administrative and other costs associated with those loans. 10 (b) The foreclosure expense account is established as a special account in the 11 community quota entity revolving loan fund. The authority [COMMISSIONER] may 12 expend money credited to the foreclosure expense account when necessary to protect 13 the authority's [STATE'S] security interest in collateral on loans made under 14 AS 16.10.310(a)(1)(E) after June 30, 2012, or to defray expenses incurred during 15 foreclosure proceedings after a default by an obligor. 16 * Sec. 24. AS 16.10.350 is amended to read: 17 Sec. 16.10.350. Administration of fund. (a) The authority 18 [COMMISSIONER] shall administer the commercial fishing revolving loan fund and 19 the community quota entity revolving loan fund. 20 (b) The authority [COMMISSIONER] shall annually prepare a report 21 detailing the number and nature of reinstatements authorized by AS 16.10.335(a)(5) 22 and notify the legislature that the report is available. 23 * Sec. 25. AS 16.10.350(a), as amended by sec. 11, ch. 58, SLA 2012, is amended to read: 24 (a) The authority [COMMISSIONER] shall administer the commercial 25 fishing revolving loan fund. 26 * Sec. 26. AS 16.10.353(a) is amended to read: 27 (a) The authority [COMMISSIONER] may release information about a 28 borrower's loan to any individual when release of the information has been authorized 29 by the borrower. 30 * Sec. 27. AS 16.10.355 is amended to read: 31 Sec. 16.10.355. Disposal of property acquired by default or foreclosure.
01 The authority [DEPARTMENT] shall dispose of property acquired through default or 02 foreclosure of a loan made under AS 16.10.300 - 16.10.370 or former AS 16.10.650 - 03 16.10.720. Disposal shall be made in a manner that serves the best interests of the 04 state, and may include the amortization of payments over a period of years, but may 05 not be by lease. 06 * Sec. 28. AS 16.10.360 is amended by adding a new paragraph to read: 07 (6) "authority" means the Alaska Industrial Development and Export 08 Authority. 09 * Sec. 29. AS 16.10.505(a) is amended to read: 10 (a) The [THERE IS CREATED WITHIN THE DEPARTMENT OF 11 COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT A 12 REVOLVING FUND TO BE KNOWN AS THE] fisheries enhancement revolving 13 loan fund is created in the authority. The fund is not an account in the revolving 14 fund established in AS 44.88.060, and the authority shall account for the fund 15 separately from the revolving fund. Except as provided in (b) and (c) of this section, 16 the fund shall be used to carry out the purposes of AS 16.10.500 - 16.10.560 and for 17 no other purpose. All principal and interest payments, and money chargeable to 18 principal or interest that is collected through liquidation by foreclosure or other 19 process on loans made under AS 16.10.500 - 16.10.560, shall be paid into the fisheries 20 enhancement revolving loan fund. 21 * Sec. 30. AS 16.10.505(c) is amended to read: 22 (c) Money in the fund that the authority [COMMISSIONER] determines to 23 be excess to that needed to carry out the purpose of AS 16.10.500 - 16.10.560 may be 24 used to carry out the purpose of AS 16.10.300 - 16.10.370. 25 * Sec. 31. AS 16.10.507(b) is amended to read: 26 (b) The authority [COMMISSIONER] may expend money credited to the 27 foreclosure expense account when necessary to protect the authority's [STATE'S] 28 security interest in collateral on loans made under AS 16.10.520 or to defray expenses 29 incurred during foreclosure proceedings after a default by an obligor. 30 * Sec. 32. AS 16.10.510 is amended to read: 31 Sec. 16.10.510. Powers and duties of the authority [COMMISSIONER].
01 The authority [COMMISSIONER] may 02 (1) make loans to permit holders, under AS 16.10.400 - 16.10.470, 03 including those holders issued permits before June 24, 1977, for the planning, 04 construction, and operation of hatchery facilities; 05 (2) make loans to qualified regional associations that have formed a 06 nonprofit corporation or a local nonprofit corporation approved by a qualified regional 07 association, for preconstruction activities necessary to obtain a permit; 08 (3) designate agents and delegate powers to them as necessary; 09 (4) adopt regulations necessary to carry out the provisions of 10 AS 16.10.500 - 16.10.560, including regulations to establish reasonable fees for 11 services provided; 12 (5) establish amortization plans for repayment of loans, not to exceed 13 30 years unless the authority [COMMISSIONER] has extended the term of the loan 14 beyond 30 years under (11) of this section; 15 (6) establish the rate of interest for loans not to exceed nine and one- 16 half percent a year; 17 (7) establish regional and local offices and advisory groups to carry 18 out, or assist in carrying out, the duties and authority of the authority 19 [COMMISSIONER]; 20 (8) make grants for organizational and planning purposes to qualified 21 regional associations that have formed a nonprofit corporation, in amounts not 22 exceeding $100,000 for each [PER] region and up to an additional $100,000 on a 23 50/50 cash matching basis with the regional associations that have an authorized 24 royalty assessment under AS 16.10.540; the state portion of the matching share shall 25 be available when a final vote for assessments is made under AS 16.10.540; this 26 provision also applies to qualified regional associations that have formed a nonprofit 27 corporation before June 24, 1977; 28 (9) make loans to qualified regional associations that have formed a 29 nonprofit corporation or to local nonprofit corporations approved by qualified regional 30 associations for planning and implementation of fisheries enhancement and 31 rehabilitation activities including [, BUT NOT LIMITED TO,] lake fertilization and
01 habitat improvement; 02 (10) refinance a debt obligation incurred by a borrower under this 03 section if the borrower otherwise qualifies for a loan under AS 16.10.500 - 16.10.560; 04 the interest rate for a loan to refinance a debt obligation incurred under this section 05 may not exceed the interest rate that is in effect for new loans under this section at the 06 time that the loan commitment for the refinancing loan is made; a loan made under 07 this paragraph is not subject to AS 16.10.525; 08 (11) extend the term of a loan made under this section if the authority 09 [COMMISSIONER] finds that extension of the term of the loan would alleviate an 10 undue financial hardship on the borrower; the authority [COMMISSIONER] shall 11 submit annually a report to the legislature summarizing the authority's 12 [COMMISSIONER'S] decisions during the prior calendar year to approve or deny 13 requests to extend loans under this paragraph and the reasons for the decisions; 14 (12) charge and collect the fees established under this section. 15 * Sec. 33. AS 16.10.520(b) is amended to read: 16 (b) Loans for the total project costs may be made if the authority 17 [COMMISSIONER] determines that the applicant has sufficient financial resources to 18 insure the establishment of an equity position in the project equal to 10 percent of the 19 loan within 10 years or less, either through a royalty assessment levied under 20 AS 16.10.540 or other means approved by the authority [COMMISSIONER]. For 21 purposes of this subsection, "total project costs" includes planning and construction 22 costs for the facility and the cost of operations for not more than the first 10 years. The 23 costs for operations shall be loaned on an annual basis. 24 * Sec. 34. AS 16.10.520(c) is amended to read: 25 (c) All loans shall be secured by collateral satisfactory to the authority 26 [COMMISSIONER], including [BUT NOT LIMITED TO] a first deed of trust, 27 assignment of lease and leasehold improvements, sale of surplus fish from the 28 hatchery, or royalty assessments from fishermen levied under AS 16.10.540. 29 * Sec. 35. AS 16.10.520(d) is amended to read: 30 (d) The authority [COMMISSIONER] may require adequate evidence of 31 performance in utilizing loan funds approved for an initial or preliminary project
01 before approving a subsequent loan application. 02 * Sec. 36. AS 16.10.520(f) is amended to read: 03 (f) The authority [COMMISSIONER] may not make a loan under 04 AS 16.10.500 - 16.10.550 from funds available under AS 16.10.340(c), unless the 05 authority [COMMISSIONER] determines, in consultation with the appropriate 06 regional planning team established under AS 16.10.375, that the hatchery or other 07 enhancement or rehabilitation activity for which the loan is requested will provide a 08 significant contribution to common property fisheries, be operated in a manner 09 beneficial to the public interest, and be managed in a financially viable manner that is 10 reasonably expected to result in repayment of the loan. 11 * Sec. 37. AS 16.10.525 is amended to read: 12 Sec. 16.10.525. Repayment of principal and interest on loans. The 13 authority [COMMISSIONER] may not require the repayment of principal on a loan 14 made under AS 16.10.510 for the initial period of the loan. Interest on the principal of 15 a loan made under AS 16.10.510 does not accrue during the initial period of the loan. 16 In this subsection, the "initial period of the loan" means a period of time determined 17 by the authority [COMMISSIONER] that is not less than six years or more than 10 18 years from the date the loan is made. 19 * Sec. 38. AS 16.10.540(b) is amended to read: 20 (b) Upon satisfactory demonstration to the authority [COMMISSIONER] 21 that an assessment levied under this section may reasonably be relied upon to secure 22 and repay a loan to be made under AS 16.10.510, the authority [COMMISSIONER] 23 may make the loan. 24 * Sec. 39. AS 16.10.555 is amended to read: 25 Sec. 16.10.555. Disposal of property acquired by default or foreclosure. 26 The authority [DEPARTMENT OF COMMERCE, COMMUNITY, AND 27 ECONOMIC DEVELOPMENT] shall dispose of property acquired through default or 28 foreclosure of a loan made under AS 16.10.500 - 16.10.560. Disposal shall be made in 29 a manner that serves the best interests of the state, and may include the amortization of 30 payments over a period of years. 31 * Sec. 40. AS 16.10.560 is amended by adding a new paragraph to read:
01 (3) "authority" means the Alaska Industrial Development and Export 02 Authority. 03 * Sec. 41. AS 16.10.801(a) is amended to read: 04 (a) The commercial charter fisheries revolving loan fund is created in the 05 authority [DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC 06 DEVELOPMENT] to carry out the purposes of AS 16.10.801 - 16.10.840. The fund 07 is not an account in the revolving fund established in AS 44.88.060, and the 08 authority shall account for the fund separately from the revolving fund. 09 * Sec. 42. AS 16.10.805 is amended to read: 10 Sec. 16.10.805. Powers and duties of the authority [DEPARTMENT]. The 11 authority [DEPARTMENT] may 12 (1) make loans to eligible applicants under AS 16.10.801 - 16.10.840 13 (A) for the purchase of charter halibut permits; 14 (B) to refinance debt obligations made by other lenders more 15 than 12 months before the authority [DEPARTMENT] received the loan 16 application and incurred by an applicant for the purchase of charter halibut 17 fishing vessels or gear if the applicant otherwise qualifies for a loan under 18 AS 16.10.801 - 16.10.840; the authority [DEPARTMENT] may collect a 19 refinancing loan origination charge as provided by regulation; 20 (2) receive, take, hold, and administer any appropriation, transfer, gift, 21 grant, bequest, devise, or donation of money for the fund; 22 (3) establish amortization plans for repayment of loans, including 23 extensions of the terms of loans; 24 (4) allow an assumption of a loan if 25 (A) the applicant meets the requirements established under this 26 section; and 27 (B) approval of the assumption would be consistent with the 28 purposes of AS 16.10.801 - 16.10.840; 29 (5) establish the rate of interest for loans consistent with law; 30 (6) charge and collect fees for services provided under AS 16.10.801 - 31 16.10.840;
01 (7) adopt regulations [UNDER AS 44.62] necessary to carry out the 02 provisions of AS 16.10.801 - 16.10.840, including regulations to establish reasonable 03 fees for services provided; and 04 (8) designate agents and delegate powers as necessary to the agents. 05 * Sec. 43. AS 16.10.810(b) is amended to read: 06 (b) In addition to the requirements set out in (a) of this section, the applicant 07 must provide to the authority [DEPARTMENT] a document from a state financial 08 institution stating that 09 (1) the applicant has been denied a loan for the same purpose; or 10 (2) a loan from the financial institution is contingent on the applicant 11 also receiving a loan from the fund. 12 * Sec. 44. AS 16.10.815(a) is amended to read: 13 (a) Except as provided in (b) of this section, a loan under AS 16.10.801 - 14 16.10.840 15 (1) for a charter halibut permit may not exceed the permit value 16 determined by a 12-month rolling average set quarterly by the authority 17 [DEPARTMENT] for like permits; 18 (2) for a loan other than a loan for a charter halibut permit may not 19 exceed $100,000 a year; 20 (3) may not exceed a term of 15 years, except for extensions under 21 AS 16.10.805; 22 (4) may not bear interest at a rate greater than the prime rate, as 23 defined in AS 44.88.599, plus two percentage points, but which may not be less than 24 six percent a year or more than 10 1/2 percent a year; 25 (5) must be secured by a first priority lien on collateral acceptable to 26 the authority [COMMISSIONER], which may include collateral other than a charter 27 halibut permit; and 28 (6) may not be made to a person who has a past due child support 29 obligation established by court order or by the child support services agency under 30 AS 25.27.160 - 25.27.220 at the time of application. 31 * Sec. 45. AS 16.10.820 is amended to read:
01 Sec. 16.10.820. Default. If the borrower defaults on a note, the authority 02 [DEPARTMENT] shall notify the borrower of the default and the consequences of 03 default by mailing a notice to the borrower's most recent address provided to the 04 authority [DEPARTMENT] by the borrower or obtained by the authority 05 [DEPARTMENT]. 06 * Sec. 46. AS 16.10.825(b) is amended to read: 07 (b) The authority [DEPARTMENT] may expend money credited to the 08 foreclosure expense account when necessary to protect the authority's [STATE'S] 09 security interest in collateral on loans granted under AS 16.10.815 or to defray 10 expenses incurred during foreclosure proceedings after an obligor defaults. 11 * Sec. 47. AS 16.10.830 is amended to read: 12 Sec. 16.10.830. Disposal of property acquired after default. The authority 13 [DEPARTMENT] shall dispose of property acquired through default of a loan made 14 under AS 16.10.801 - 16.10.840. Disposal must be made in a manner that serves the 15 best interest of the state and may include the amortization of payments over a period 16 of years. 17 * Sec. 48. AS 16.10.835 is amended to read: 18 Sec. 16.10.835. Waiver of confidentiality. The authority 19 [COMMISSIONER] may release information about the borrower's loan to any 20 individual if release of the information has been authorized by the borrower. 21 * Sec. 49. AS 16.10.840 is amended by adding a new paragraph to read: 22 (3) "authority" means the Alaska Industrial Development and Export 23 Authority. 24 * Sec. 50. AS 16.10.900(a) is amended to read: 25 (a) The mariculture revolving loan fund is created in [WITHIN] the authority 26 [DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC 27 DEVELOPMENT] to carry out the purposes of AS 16.10.900 - 16.10.945. The fund 28 is not an account in the revolving fund established in AS 44.88.060, and the 29 authority shall account for the fund separately from the revolving fund. 30 * Sec. 51. AS 16.10.905 is amended to read: 31 Sec. 16.10.905. Powers and duties of the authority [DEPARTMENT]. The
01 authority [DEPARTMENT] may 02 (1) make loans to eligible applicants under AS 16.10.900 - 16.10.945 03 for the planning, construction, and operation of a mariculture business; 04 (2) receive, take, hold, and administer any appropriation, transfer, gift, 05 grant, bequest, devise, or donation of money for the fund; 06 (3) establish amortization plans for repayment of loans, including 07 extensions of the terms of loans; 08 (4) allow an assumption of a loan if 09 (A) the applicant meets the requirements established under this 10 section; and 11 (B) approval of the assumption would be consistent with the 12 purposes of AS 16.10.900 - 16.10.945; 13 (5) establish the rate of interest for loans consistent with law; 14 (6) charge and collect fees for services provided under AS 16.10.900 - 15 16.10.945; 16 (7) adopt regulations [UNDER AS 44.62] necessary to carry out the 17 provisions of AS 16.10.900 - 16.10.945, including regulations to establish reasonable 18 fees for services provided; and 19 (8) designate agents and delegate powers as necessary to the agents. 20 * Sec. 52. AS 16.10.915(a) is amended to read: 21 (a) Except as provided in (b) and (c) of this section, a loan under 22 AS 16.10.900 - 16.10.945 23 (1) may not exceed $100,000 a year; 24 (2) may not exceed a term of 20 years, except for extensions under 25 AS 16.10.905; 26 (3) may not bear interest at a rate greater than the prime rate, as 27 defined in AS 44.88.599, plus one percentage point, but which may not be less than 28 five percent a year or more than nine percent a year; 29 (4) must be secured by a first priority lien on collateral acceptable to 30 the authority [DEPARTMENT]; and 31 (5) may not be made to a person who has a past due child support
01 obligation established by court order or by the child support services agency under 02 AS 25.27.160 - 25.27.220 at the time of application. 03 * Sec. 53. AS 16.10.915(d) is amended to read: 04 (d) For a loan made under AS 16.10.900 - 16.10.945, the authority 05 [DEPARTMENT] may provide a reduction of the interest rate of not more than two 06 percent if at least 50 percent of the loan proceeds are used by the borrower for 07 purchasing products manufactured or produced in the state. When the authority 08 [DEPARTMENT] offers a reduction under this subsection, the authority 09 [DEPARTMENT] shall provide the reduction to all loan applicants who meet the 10 criterion described in this subsection. In this subsection, "manufactured or produced" 11 means processing, developing, or making an item into a new item with a distinct 12 character and use. 13 * Sec. 54. AS 16.10.920 is amended to read: 14 Sec. 16.10.920. Repayment of principal of and interest on loans. The 15 authority [DEPARTMENT] may not require the repayment of principal and interest 16 on a loan made under AS 16.10.910 during the first six years of the loan. Interest on 17 the principal of a loan made under AS 16.10.910 may be deferred for a period of not 18 more than the first six years of the loan. 19 * Sec. 55. AS 16.10.925 is amended to read: 20 Sec. 16.10.925. Default. If the borrower defaults on a note, the authority 21 [DEPARTMENT] shall notify the borrower of the default and the consequences of 22 default by mailing a notice to the borrower's most recent address provided to the 23 authority [DEPARTMENT] by the borrower or obtained by the authority 24 [DEPARTMENT]. 25 * Sec. 56. AS 16.10.930(b) is amended to read: 26 (b) The authority [DEPARTMENT] may expend money credited to the 27 foreclosure expense account when necessary to protect the authority's [STATE'S] 28 security interest in collateral on loans granted under AS 16.10.910 or to defray 29 expenses incurred during foreclosure proceedings after an obligor defaults. 30 * Sec. 57. AS 16.10.935 is amended to read: 31 Sec. 16.10.935. Disposal of property acquired after default. The authority
01 [DEPARTMENT] shall dispose of property acquired through default of a loan made 02 under AS 16.10.900 - 16.10.945. Disposal must be made in a manner that serves the 03 best interest of the state and may include the amortization of payments over a period 04 of years. 05 * Sec. 58. AS 16.10.940 is amended to read: 06 Sec. 16.10.940. Waiver of confidentiality. The authority 07 [COMMISSIONER] may release information about the borrower's loan to any 08 individual if release of the information has been authorized by the borrower. 09 * Sec. 59. AS 16.10.945 is amended by adding a new paragraph to read: 10 (4) "authority" means the Alaska Industrial Development and Export 11 Authority. 12 * Sec. 60. AS 44.33.655(a) is amended to read: 13 (a) The [THERE IS CREATED IN THE DEPARTMENT OF COMMERCE, 14 COMMUNITY, AND ECONOMIC DEVELOPMENT A REVOLVING LOAN 15 FUND TO BE KNOWN AS THE] Alaska capstone avionics revolving loan fund is 16 created in the authority to carry out the purposes of AS 44.33.650 - 44.33.690. The 17 fund is not an account in the revolving fund established in AS 44.88.060, and the 18 authority shall account for the fund separately from the revolving fund. 19 * Sec. 61. AS 44.33.660 is amended to read: 20 Sec. 44.33.660. Powers and duties of the authority [DEPARTMENT]. The 21 authority [DEPARTMENT] may 22 (1) make loans to eligible applicants under AS 44.33.665 for the 23 purchase and installation of capstone avionics equipment; 24 (2) receive, take, hold, and administer any appropriation, gift, grant, 25 bequest, devise, or donation of money for the fund; 26 (3) establish amortization plans for repayment of loans, including 27 extensions of the terms of loans; 28 (4) allow an assumption of a loan if the applicant meets the 29 requirements established under this section; 30 (5) establish the rate of interest for loans consistent with law; 31 (6) charge and collect fees for services provided under AS 44.33.650 -
01 44.33.690; 02 (7) adopt regulations [UNDER AS 44.62] necessary to carry out the 03 provisions of AS 44.33.650 - 44.33.690, including regulations to establish reasonable 04 fees for services provided; and 05 (8) designate agents and delegate powers as necessary to the agents. 06 * Sec. 62. AS 44.33.665(b) is amended to read: 07 (b) After consultation with the Department of Transportation and Public 08 Facilities, the authority [DEPARTMENT OF COMMERCE, COMMUNITY, AND 09 ECONOMIC DEVELOPMENT] shall establish by regulation the standards for 10 capstone avionics equipment eligible for loans. 11 * Sec. 63. AS 44.33.670 is amended to read: 12 Sec. 44.33.670. Limitations on loans. A loan established under AS 44.33.650 13 - 44.33.690 14 (1) may not exceed a term of 10 years, except for extensions under 15 AS 44.33.660; 16 (2) may not bear interest less than four percent a [PER] year; 17 (3) must be secured by collateral acceptable to the authority 18 [DEPARTMENT]; and 19 (4) may not exceed 80 percent of the cost of the eligible capstone 20 avionics equipment purchased with proceeds of the loan. 21 * Sec. 64. AS 44.33.675(b) is amended to read: 22 (b) The authority [DEPARTMENT] may expend money credited to the 23 foreclosure expense account when necessary to protect the authority's [STATE'S] 24 security interest in collateral on loans granted under AS 44.33.665 or to defray 25 expenses incurred during foreclosure proceedings after a default by an obligor. 26 * Sec. 65. AS 44.33.680 is amended to read: 27 Sec. 44.33.680. Disposal of property acquired by default or foreclosure. 28 The authority [DEPARTMENT] shall dispose of property acquired through default or 29 foreclosure of a loan made under AS 44.33.650 - 44.33.690. Disposal must be made in 30 a manner that serves the best interest of the state and may include the amortization of 31 payments over a term of years.
01 * Sec. 66. AS 44.33.690 is amended by adding a new paragraph to read: 02 (4) "authority" means the Alaska Industrial Development and Export 03 Authority. 04 * Sec. 67. AS 44.33.950(a) is amended to read: 05 (a) The Alaska microloan revolving loan fund is created in the authority 06 [DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC 07 DEVELOPMENT] to carry out the purposes of AS 44.33.950 - 44.33.990. The fund 08 is not an account in the revolving fund established in AS 44.88.060, and the 09 authority shall account for the fund separately from the revolving fund. 10 * Sec. 68. AS 44.33.955 is amended to read: 11 Sec. 44.33.955. Powers and duties of the authority [DEPARTMENT]. The 12 authority [DEPARTMENT] may 13 (1) make loans to eligible applicants under AS 44.33.950 - 44.33.990 14 to be used for working capital, equipment, construction, or other commercial purposes 15 by a business located in the state; 16 (2) receive, take, hold, and administer any appropriation, transfer, gift, 17 grant, bequest, devise, or donation of money for the fund; 18 (3) establish amortization plans for repayment of loans, including 19 extensions of the terms of loans; 20 (4) allow an assumption of a loan if 21 (A) the applicant meets the requirements established under this 22 section; and 23 (B) approval of the assumption would be consistent with the 24 purposes of AS 44.33.950 - 44.33.990; 25 (5) establish the rate of interest for loans consistent with law; 26 (6) charge and collect fees for services provided under AS 44.33.950 - 27 44.33.990; 28 (7) adopt regulations [UNDER AS 44.62] necessary to carry out the 29 provisions of AS 44.33.950 - 44.33.990, including regulations to establish reasonable 30 fees for services provided; and 31 (8) designate agents and delegate powers as necessary to the agents.
01 * Sec. 69. AS 44.33.960(a) is amended to read: 02 (a) For an applicant to be eligible for a loan under AS 44.33.950 - 44.33.990, 03 the applicant shall 04 (1) be a resident of the state, as determined under (b) of this section; 05 (2) provide a reasonable amount of money from other nonstate sources 06 for use on any project or enterprise for which money from a loan will be used; and 07 (3) if the requested loan amount is $35,000 or more, provide to the 08 authority [DEPARTMENT] a document from a state financial institution stating that 09 (A) the applicant has been denied a loan for the same purpose; 10 or 11 (B) a loan from the financial institution is contingent on the 12 applicant also receiving a loan from the fund. 13 * Sec. 70. AS 44.33.965 is amended to read: 14 Sec. 44.33.965. Limitations on loans. (a) The authority [DEPARTMENT] 15 may use money from the Alaska microloan revolving loan fund to make loans of up to 16 $35,000 to a person or loans of up to $70,000 to two or more persons. 17 (b) A loan under AS 44.33.950 - 44.33.990 18 (1) may not exceed a term of six years, except for extensions under 19 AS 44.33.955; 20 (2) may not bear interest at a rate greater than the prime rate, as 21 defined in AS 44.88.599, plus one percentage point, but which may not be less than 22 six percent a year or more than eight percent a year; 23 (3) must be secured by collateral acceptable to the authority 24 [COMMISSIONER]; and 25 (4) may not be made to a person who has a past due child support 26 obligation established by court order or by the child support services agency under 27 AS 25.27.160 - 25.27.220 at the time of application. 28 * Sec. 71. AS 44.33.970(b) is amended to read: 29 (b) The authority [DEPARTMENT] may expend money credited to the 30 foreclosure expense account when necessary to protect the authority's [STATE'S] 31 security interest in collateral on loans granted under AS 44.33.960 or to defray
01 expenses incurred during foreclosure proceedings after an obligor defaults. 02 * Sec. 72. AS 44.33.975 is amended to read: 03 Sec. 44.33.975. Default. If the borrower defaults on a note, the authority 04 [DEPARTMENT] shall notify the borrower of the default and the consequences of 05 default by mailing a notice to the borrower's most recent address provided to the 06 authority [DEPARTMENT] by the borrower or obtained by the authority 07 [DEPARTMENT]. 08 * Sec. 73. AS 44.33.980 is amended to read: 09 Sec. 44.33.980. Disposal of property acquired after default. The authority 10 [DEPARTMENT] shall dispose of property acquired through default of a loan made 11 under AS 44.33.950 - 44.33.990. Disposal must be made in a manner that serves the 12 best interest of the state and may include the amortization of payments over a period 13 of years. 14 * Sec. 74. AS 44.33.990 is amended by adding a new paragraph to read: 15 (3) "authority" means the Alaska Industrial Development and Export 16 Authority. 17 * Sec. 75. AS 44.88.080 is amended to read: 18 Sec. 44.88.080. Powers of the authority. In furtherance of its corporate 19 purposes, the authority has the following powers in addition to its other powers: 20 (1) to sue and be sued; 21 (2) to have a seal and alter it at pleasure; 22 (3) to make and alter bylaws for its organization and internal 23 management; 24 (4) to adopt regulations governing the exercise of its corporate powers; 25 (5) to acquire an interest in a project as necessary or appropriate to 26 provide financing for the project, whether by purchase, gift, or lease; 27 (6) to lease to others a project acquired by it for the rentals and upon 28 the terms and conditions the authority may consider advisable, including, without 29 limitation, provisions for options to purchase or renew; 30 (7) to issue bonds and otherwise to incur indebtedness, in accordance 31 with AS 44.88.090, in order to pay the cost of a project or development projects or in
01 order to provide money for the authority's purposes under this chapter; the authority 02 may also secure payment of the bonds or other indebtedness as provided in this 03 chapter; 04 (8) to sell, by installment sale or otherwise, exchange, donate, convey, 05 or encumber, in any manner by mortgage or by creation of any other security interest, 06 real or personal property owned by it, or in which it has an interest, including a 07 project, when, in the judgment of the authority, the action is in furtherance of its 08 corporate purposes; 09 (9) to accept gifts, grants, or loans from, and enter into contracts or 10 other transactions regarding them with, a federal agency, an agency or instrumentality 11 of the state, a municipality, a private organization, or other source; 12 (10) to deposit or invest its funds, subject to agreements with 13 bondholders; 14 (11) to enter into contracts or agreements with respect to the exercise 15 of any of its powers, and do all things necessary or convenient to carry out its 16 corporate purposes and exercise the powers granted in this chapter; 17 (12) to purchase or insure loans to finance the costs of manufacturing, 18 industrial, and business enterprise projects; 19 (13) to enter into loan agreements with respect to one or more projects 20 upon the terms and conditions the authority considers advisable; 21 (14) to acquire, manage, and operate projects as the authority considers 22 necessary or appropriate to serve a public purpose; 23 (15) to assist private lenders to make loans to finance the costs of 24 projects through loan commitments, short-term financing, or otherwise; 25 (16) to accept gifts, grants, or loans from a federal agency, from an 26 agency or instrumentality of the state or of a municipality, or from any other source; 27 (17) to enter into contracts or other transactions with a federal agency, 28 with an agency or instrumentality of the state or of a municipality, or with a private 29 organization or other entity consistent with the exercise of any power under this 30 chapter; 31 (18) to facilitate the expansion of a secondary market for the resale of
01 federally or commercially insured loans made to finance the costs of projects in the 02 state held by federal and state chartered financial institutions or by the Alaska 03 Commercial Fishing and Agriculture Bank; 04 (19) to charge fees or other forms of remuneration for the use or 05 possession of the projects described in (14) of this section in accordance with the 06 agreements described in (11) and (17) of this section, other agreements pertaining to 07 the projects, covenants, or representations made in bond documents pertaining to the 08 projects, or regulations of the authority pertaining to the projects; 09 (20) to participate with government or private industry in programs for 10 technical assistance, loans, technology, transfer, or other programs related to the 11 exportation of goods, services, or raw materials of the state with respect to its 12 financing activities; 13 (21) to provide export finance training for office staff and other 14 individuals involved in export finance assistance, including the training sessions that 15 may be provided by the United States Export-Import Bank or other organizations; 16 (22) to coordinate to the maximum extent possible its efforts to 17 promote the export of goods, services, and raw materials of the state with programs 18 and goals of the United States Export-Import Bank, the International Trade 19 Administration of the United States Department of Commerce, the Foreign Credit 20 Insurance Association, and other private and public programs designed to provide 21 export assistance and export-related financing; 22 (23) to guarantee loans related to qualified export transactions under 23 regulations adopted by the authority; 24 (24) to provide financing assistance, in cooperation with federal, state, 25 and private institutions, as provided in this chapter for small business enterprises; 26 (25) to make cooperative agreements with the Department of 27 Transportation and Public Facilities, acting on behalf of the international airports 28 revenue fund established under AS 37.15.430, to acquire, equip, operate, maintain, 29 construct, or install facilities that will enhance the competitiveness of the international 30 airports, including a cooperative agreement to lend amounts from the international 31 airports revenue fund to finance the development or improvement of utilities serving
01 the airports; 02 (26) to screen potential applicants for a new business incentive grant 03 and recommend the award of the grants under AS 45.81.020; 04 (27) to oversee the administration of outstanding grants awarded by the 05 Alaska Science and Technology Foundation under former AS 37.17.010 - 37.17.110; 06 (28) to oversee the administration of outstanding BIDCO assistance 07 grants and loans made by the Alaska Science and Technology Foundation under 08 former AS 37.17.200 - 37.17.390; 09 (29) to guarantee loans made to the Alaska Insurance Guaranty 10 Association (AS 21.80.040), with these guarantees limited to loans necessary to make 11 the association financially able to meet cash flow needs up to a maximum outstanding 12 principal balance at any time of $30,000,000; 13 (30) with legislative approval and notwithstanding AS 44.88.060, to 14 purchase from the Alaska Energy Authority as an investment of the revolving fund, 15 loans of the power project fund established under AS 42.45.010; 16 (31) to consider, when exercising the powers listed in this section, the 17 interests of local governments affected by the authority's activities to share in the 18 benefits of these activities, with appropriate consideration of the authority's ability to 19 meet debt obligations, issue new debt, and fulfill the authority's purposes; 20 (32) to provide development project financing for all or a portion of 21 the cost of a development project as provided in AS 44.88.172; 22 (33) administer and make loans from the community quota entity 23 revolving loan fund established in AS 16.10.345, the commercial fishing revolving 24 loan fund established in AS 16.10.340, the fisheries enhancement revolving loan 25 fund established in AS 16.10.505, the commercial charter fisheries revolving loan 26 fund established in AS 16.10.801, the mariculture revolving loan fund established 27 in AS 16.10.900, the Alaska capstone avionics revolving loan fund established in 28 AS 44.33.655, the Alaska microloan revolving loan fund established in 29 AS 44.33.950, and the alternative energy conservation revolving loan fund 30 established in AS 45.88.010. 31 * Sec. 76. AS 45.88.010(a) is amended to read:
01 (a) The [THERE IS ESTABLISHED IN THE DEPARTMENT OF 02 COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT THE] 03 alternative energy conservation revolving loan fund is created in the authority to 04 carry out the purposes of AS 45.88.010 - 45.88.090. The fund is not an account in 05 the revolving fund established in AS 44.88.060, and the authority shall account 06 for the fund separately from the revolving fund. Loans made under AS 45.88.010 - 07 45.88.090 are to be used 08 (1) to develop means of energy production utilizing one or more 09 alternative energy systems; and 10 (2) to purchase, construct, and install energy conservation 11 improvements in commercial buildings. 12 * Sec. 77. AS 45.88.015(b) is amended to read: 13 (b) The authority [COMMISSIONER OF COMMERCE, COMMUNITY, 14 AND ECONOMIC DEVELOPMENT] may expend money credited to the foreclosure 15 expense account when necessary to protect the authority's [STATE'S] security 16 interest in collateral on loans made under AS 45.88.020 or to defray expenses incurred 17 during foreclosure proceedings after a default by an obligor. 18 * Sec. 78. AS 45.88.020 is amended to read: 19 Sec. 45.88.020. Powers and duties of the authority [DEPARTMENT] in 20 administering the fund. (a) The authority [DEPARTMENT] may 21 (1) make loans for the purchase, construction, and installation, in 22 commercial buildings that are located in the state, of 23 (A) alternative energy systems; and 24 (B) energy conservation improvements; 25 (2) adopt regulations necessary to carry out the provisions of 26 AS 45.88.010 - 45.88.090, including regulations to establish reasonable fees for 27 services provided and charges for collecting the fees; 28 (3) collect the fees and collection charges established under this 29 subsection. 30 (b) The authority [DEPARTMENT] shall develop eligibility standards for 31 loans made under AS 45.88.010 - 45.88.090 and adopt guidelines for the
01 determination of loan terms. 02 (c) The authority [DEPARTMENT] may not make a loan under 03 AS 45.88.010 - 45.88.090 to a person who has a past due child support obligation 04 established by court order or by the child support services agency under AS 25.27.160 05 - 25.27.220 at the time of application. 06 * Sec. 79. AS 45.88.030(a) is amended to read: 07 (a) A loan made under AS 45.88.010 - 45.88.090 may not exceed $50,000. If 08 the requested loan amount exceeds $30,000, the applicant must deliver to the 09 authority [DEPARTMENT] a document from a financial institution stating that 10 (1) the applicant has been denied a loan for the same purpose; or 11 (2) the loan from the financial institution is contingent on the applicant 12 also receiving a loan from the fund. 13 * Sec. 80. AS 45.88.050 is amended to read: 14 Sec. 45.88.050. Disposal of property acquired by default or foreclosure. 15 The authority [DEPARTMENT OF COMMERCE, COMMUNITY, AND 16 ECONOMIC DEVELOPMENT] shall dispose of property acquired through default or 17 foreclosure of a loan made under AS 45.88.010 - 45.88.090. Disposal shall be made in 18 a manner that serves the best interests of the state, and may include the amortization of 19 payments over a period of years. 20 * Sec. 81. AS 45.88.090(a) is amended by adding a new paragraph to read: 21 (4) "authority" means the Alaska Industrial Development and Export 22 Authority. 23 * Sec. 82. AS 16.10.360(2), 16.10.360(4), 16.10.560(1), 16.10.840(1), 16.10.840(2), 24 16.10.945(1), 16.10.945(2); AS 44.33.690(3), 44.33.990(1), and 44.33.990(2) are repealed. 25 * Sec. 83. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 TRANSITION: ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT 28 AUTHORITY ASSUMPTION OF LOANS MADE BY THE DEPARTMENT OF 29 COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT. (a) All contracts, 30 rights, liabilities, notes, or other obligations of the Department of Commerce, Community, 31 and Economic Development created by or under a law amended or repealed by this Act and in
01 effect on the effective date of this section remain in effect notwithstanding this Act's taking 02 effect, with all contracts, rights, liabilities, notes, or other obligations of the Department of 03 Commerce, Community, and Economic Development becoming contracts, rights, liabilities, 04 notes, and other obligations of the Alaska Industrial Development and Export Authority with 05 the same limitations and provisions as under a contract, right, liability, note, or other 06 obligation of the Department of Commerce, Community, and Economic Development. 07 (b) All records of the Department of Commerce, Community, and Economic 08 Development related to a program transferred to the Alaska Industrial Development and 09 Export Authority by this Act shall be transferred to the Alaska Industrial Development and 10 Export Authority to implement the provisions of this Act. 11 * Sec. 84. Sections 20, 22, and 25 of this Act take effect June 30, 2017.