00                             HOUSE BILL NO. 315                                                                          
01 "An Act relating to the Alaska microloan revolving loan 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 $50,000 [$35,000],                                   
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 [12] 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 one [TWO] percentage point [POINTS], but that may                           
06       not be less than four 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.