00 HOUSE BILL NO. 408                                                                                                      
01 "An Act setting a maximum rate of interest that may be charged on a loan                                                
02 guaranteed by the Alaska Industrial Development and Export Authority under its                                          
03 export assistance program; and annulling a portion of a current regulation of the                                       
04 Alaska Industrial Development and Export Authority that establishes the maximum                                         
05 allowable interest on a guaranteed loan to be computed at a different rate."                                            
06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
07    * Section 1.  AS 44.88.320 is amended by adding a new subsection to read:                                            
08  (c)  When the authority agrees to guarantee a loan under AS 44.88.300 -                                               
09 44.88.390, the maximum interest rate on the loan guaranteed by the authority is two                                     
10 and three-quarters percentage points above the prime rate at the time of disbursement                                   
11 of the loan that is subject to the guarantee.                                                                           
12    * Sec. 2.  That portion of 3 AAC 99.650(d) directing, with reference to the interest on an                           
13 export guarantee loan, that "[i]nterest may not exceed the lesser of the rate charged under the                         
14 promissory note or one percent over the United States Treasury note rate of comparable term                             
01 at the time of disbursement" is annulled.