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HB 304: "An Act relating to the Alaska microloan revolving loan fund and loans from the fund."

00                             HOUSE BILL NO. 304                                                                          
01 "An Act relating to the Alaska microloan revolving loan fund and loans from the fund."                                  
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 44.33.960(a) is amended to read:                                                                  
04            (a)  For an applicant to be eligible for a loan under AS 44.33.950 - 44.33.990,                              
05       the applicant shall                                                                                               
06                 (1)  be a resident of the state, as determined under (b) of this section;                               
07                 (2)  provide a reasonable amount of money from other nonstate sources                                   
08       for use on any project or enterprise for which money from a loan will be used; and                                
09                 (3)  if the requested loan amount is more than $35,000 [OR MORE],                                   
10       provide to the department a document from a state financial institution stating that                              
11                      (A)  the applicant has been denied a loan for the same purpose;                                    
12            or                                                                                                           
13                      (B)  a loan from the financial institution is contingent on the                                    
14            applicant also receiving a loan from the fund.                                                               
15    * Sec. 2. AS 44.33.965(b) is amended to read:                                                                      
01            (b)  A loan under AS 44.33.950 - 44.33.990                                                                   
02                 (1)  may not exceed a term of 15 [SIX] years, except for extensions                                 
03       under AS 44.33.955;                                                                                               
04                 (2)  may not bear interest at a rate greater than the prime rate, as                                    
05       defined in AS 44.88.599, plus two [ONE] percentage points [POINT], but which may                          
06       not be less than four [six] percent a year or more than eight percent a year;                                 
07                 (3)  must be secured by collateral acceptable to the commissioner; and                                  
08 (4)  may not be made to a person who has a past due child support                                                       
09 obligation established by court order or by the child support services agency under                                     
10       AS 25.27.160 - 25.27.220 at the time of application.                                                              
11    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
12 read:                                                                                                                   
13       APPLICABILITY. AS 44.33.960, as amended by sec. 1 of this Act, and                                                
14 AS 44.33.965, as amended by sec. 2 of this Act, apply to loan applications made on or after                             
15 the effective date of this Act.