CSHB 339(L&C): "An Act authorizing the Alaska Commercial Fishing and Agriculture Bank to make loans relating to tourism and development or exploitation of natural resources."
00CS FOR HOUSE BILL NO. 339(L&C) 01 "An Act authorizing the Alaska Commercial Fishing and Agriculture Bank to 02 make loans relating to tourism and development or exploitation of natural 03 resources." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 44.81.010(a) is amended to read: 06 (a) There is established the Alaska Commercial Fishing and Agriculture Bank. 07 The exercise by the bank of the powers conferred by this chapter is considered to be 08 for a public purpose. In the exercise of its powers under AS 44.81.215(11) 09 [AS 44.81.215(7)], the bank is acting as an agent under the express authority and 10 reservations of the state as the issuer of limited entry permits under AS 16.43. The 11 bank is exempt from the provisions of AS 06.05 (Alaska Banking Code) and AS 10.15 12 (Alaska Cooperative Corporation Act) in its structure and operations and in the 13 exercise of powers granted by this chapter. 14 * Sec. 2. AS 44.81.215 is amended to read:
01 Sec. 44.81.215. Lending powers of the bank. The bank may 02 (1) make loans to individuals, including married couples, who are 03 residents of the state and who are engaged in commercial agriculture or fishing, 04 including harvesters, processors, suppliers, and marketers, if at least one of the primary 05 obligors on the loan is a member of the bank; 06 (2) make loans to corporations, partnerships, or limited liability 07 companies engaged in commercial agriculture or fishing if the majority interest of the 08 corporation, partnership, or limited liability company is beneficially owned by residents 09 of the state and a majority of the owners are residents of the state, and if at least one 10 of the primary obligors on a loan is a member of the bank; however, the bank may not 11 make a loan under this paragraph to a corporation, partnership, or limited liability 12 company for the purchase of a new or existing fishing boat or for the repair or 13 renovation of an existing fishing boat if the primary purpose of the fishing boat is to 14 commercially harvest fishery resources, unless the corporation, partnership, or limited 15 liability company is wholly owned and controlled by residents of the state, and unless 16 at least one of the primary obligors on the loan is a member of the bank; 17 (3) make loans for limited entry permits to individuals who fish 18 commercially if the individual is a state resident; loans made under this paragraph are 19 subject to AS 44.81.231; 20 (4) make loans, in an amount not to exceed $500,000 a loan, to 21 individuals, including married couples, who are residents of the state and who will 22 use the majority of the loan proceeds to commercially engage in, or in support of, 23 tourism within the state if at least one of the primary obligors on the loan is a 24 member of the bank; 25 (5) make loans, in an amount not to exceed $500,000 a loan, to 26 corporations, partnerships, or limited liability companies that will use the 27 majority of the loan proceeds to commercially engage in, or in support of, tourism 28 within the state if the majority interest of the corporation, partnership, or limited 29 liability company is beneficially owned by residents of the state and a majority of 30 the owners are residents of the state, and if at least one of the primary obligors 31 on the loan is a member of the bank;
01 (6) make loans, in an amount not to exceed $1,000,000 a loan, to 02 individuals, including married couples, who are residents of the state and who will 03 use the majority of the loan proceeds to commercially engage in, or in support of, 04 the development or exploitation of natural resources within the state if at least 05 one of the primary obligors on the loan is a member of the bank; 06 (7) make loans, in an amount not to exceed $1,000,000 a loan, to 07 corporations, partnerships, or limited liability companies that will use the 08 majority of the loan proceeds to commercially engage in, or in support of, the 09 development or exploitation of natural resources within the state if the majority 10 interest of the corporation, partnership, or limited liability company is beneficially 11 owned by residents of the state and a majority of the owners are residents of the 12 state, and if at least one of the primary obligors on the loan is a member of the 13 bank; 14 (8) [(4)] make a loan for capital investment or operating capital to a 15 shore-based fish processor, a timber processor, or an agricultural processor or harvester 16 who does not meet the resident ownership requirements of (1) or (2) of this section if 17 a facility of the processor or harvester is located in the state and the majority interest 18 in the processor or harvester is beneficially owned by residents of the United States; 19 (9) [(5)] make a loan to a person, regardless of residency, if the board 20 determines that the loan is necessary to preserve the value of property held by the bank 21 as security for a loan that was made under AS 44.81.210 or this section and that is in 22 default; 23 (10) [(6)] make loans, as provided in (1), (2), or (4) - (8) [(1), (2), OR 24 (4)] of this section, that are secured by liens subordinate to valid first liens and 25 security agreements granted to another creditor; 26 (11) [(7)] accept the pledge of a limited entry permit as security for 27 a loan made under this chapter subject to the conditions set out in AS 44.81.236 on 28 pledges of limited entry permits; 29 (12) [(8)] make loans in participation with other lenders as provided 30 in (1), (2), or (4) - (8) [(1), (2), OR (4)] of this section, whether or not an obligor is 31 a member of the bank;
01 (13) [(9)] purchase or acquire participations in loans from other lenders 02 if the participations conform to the provisions of (1), (2), or (4) - (8) [(1), (2), OR (4)] 03 of this section, whether or not an obligor is a member of the bank; 04 (14) [(10)] issue certificates of loan participation to members and to 05 other individuals, corporations, partnerships, and limited liability companies, but the 06 bank may not issue a certificate of loan participation if the certificate would allow 07 participation by the member, individual, corporation, partnership, or limited liability 08 company in loans that individually or cumulatively involve more than 20 percent of 09 the commercial fishery entry permits issued for one type of gear in a specific fishery 10 resource administrative area. 11 * Sec. 3. AS 44.81.350 is amended by adding new paragraphs to read: 12 (9) "natural resources" includes water, coal or other minerals, oil or gas, 13 and geothermal systems; in this paragraph 14 (A) "coal" means all forms of coal, including lignite; 15 (B) "gas" includes all natural gas and all hydrocarbons produced 16 at the wellhead that are not oil; 17 (C) "geothermal system" means a stratum, pool, reservoir, or 18 other geologic formation containing geothermal resources; 19 (D) "oil" includes crude petroleum oil and other hydrocarbons 20 regardless of gravity that are produced at the wellhead in liquid form and the 21 liquid hydrocarbons known as distillate or condensate recovered or extracted 22 from gas, other than gas produced in association with oil and commonly known 23 as casinghead gas; 24 (E) "other minerals" means clay, stone, sand, gravel, 25 metalliferous and non-metalliferous ores, and other solid materials or 26 substances of commercial value excavated in solid form from natural deposits 27 on or in the earth; "other minerals" does not include coal or minerals that occur 28 naturally in liquid or gaseous forms; 29 (10) "tourism" means the provision or presentation of goods, supplies, 30 equipment, food and food stuffs, accommodations, entertainment, cultural practices and 31 attractions, natural resource access, transportation, or other services to nonresident or
01 extra-regional visitors; 02 (11) "water" has the meaning given in AS 46.15.260.