00                             HOUSE BILL NO. 96                                                                          
01 "An Act relating to forgiveness of interest on certain state loans secured by a lien placed                             
02 on potential receipts from litigation involving claims for injury, loss, or destruction of                              
03 the natural resources affected by the March 24, 1989, Exxon Valdez oil spill; and                                       
04 providing for an effective date."                                                                                       
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
07 to read:                                                                                                                
08       FORGIVENESS OF INTEREST ON CERTAIN LOANS. (a) The entire amount of                                                
09 interest on a loan to one or more individuals made by an agency that is outstanding on the                              
10 effective date of this section is forgiven if repayment of the principal and interest of the loan                       
11 is secured by a lien placed on potential monetary receipts by the borrower that result from                             
12 litigation involving claims for injury, loss, or destruction of the natural resources affected by                       
13 the March 24, 1989, Exxon Valdez oil spill.                                                                             
14       (b)  This section does not apply to loans made to businesses or other organizations.                              

01 This section does not apply to loans that have been pledged as security on bonds issued by an                           
02 agency to the extent that the interest on those loans is required by the agency to satisfy the                          
03 security obligations.                                                                                                   
04       (c)  Before January 1, 2010, each agency that has made loans to individuals shall                                 
05 identify the loans to which this section applies and revise the loan terms in accordance with                           
06 the requirements of this section.                                                                                       
07       (d)  For purposes of this section, "agency" means a board, commission, or agency in                               
08 the executive branch of state government and includes a public corporation of the state and                             
09 the University of Alaska.                                                                                               
10    * Sec. 2. This Act is repealed on January 1, 2010.                                                                 
11    * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).