HB 141: "An Act relating to loans for the purchase of fishing quota shares by certain community quota entities; and providing for an effective date."
00 HOUSE BILL NO. 141 01 "An Act relating to loans for the purchase of fishing quota shares by certain community 02 quota entities; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 16.10.320(a) is amended to read: 05 (a) Except as permitted in (h) and (l) of this section, a loan under 06 AS 16.10.300 - 16.10.370 07 (1) may not exceed a term of 15 years, except for extensions under 08 AS 16.10.310(a)(4); 09 (2) may not bear interest exceeding the prime rate, as defined by 10 AS 44.88.599, plus two percentage points, but not more than 10 1/2 percent; 11 (3) must be secured by a first priority lien and appropriate security 12 agreement; 13 (4) may not exceed 80 percent of the appraised value of the collateral 14 used to secure the loan; and
01 (5) may not be made to a person who has a past due child support 02 obligation established by court order or by the child support services agency under 03 AS 25.27.160 - 25.27.220 at the time of application. 04 * Sec. 2. AS 16.10.320(j) is amended to read: 05 (j) All principal and interest payments, and any money chargeable to principal 06 or interest that is collected through liquidation by foreclosure or other process, on 07 loans made under AS 16.10.300 - 16.10.370, except loans made under 08 AS 16.10.310(a)(1)(E) after June 30, 2011, shall be paid into the commercial fishing 09 revolving loan fund. All principal and interest payments, and any money 10 chargeable to principal or interest that is collected through liquidation by 11 foreclosure or other process, on loans made under AS 16.10.310(a)(1)(E) after 12 June 30, 2011, shall be paid into the community quota entity revolving loan fund. 13 * Sec. 3. AS 16.10.320 is amended by adding a new subsection to read: 14 (l) Until a community quota entity has used loans under this subsection to 15 purchase fishing quota shares cumulatively authorizing a total take of 50,000 pounds, 16 a loan or a portion of a loan made to that community quota entity under 17 AS 16.10.310(a)(1)(E) may not exceed 95 percent of the appraised value of the 18 collateral used to secure the loan or a portion of the loan. A loan to a community quota 19 entity under AS 16.10.310(a)(1)(E) 20 (1) may not exceed a term of 25 years, except for extensions under 21 AS 16.10.310(a)(4); 22 (2) may not, alone or in combination with other loans to the 23 community quota entity under AS 16.10.310(a)(4), exceed $1,000,000 in loans to one 24 community quota entity; and 25 (3) may have terms that allow for a community quota entity to defer 26 interest payments for up to 10 years. 27 * Sec. 4. AS 16.10.340 is amended to read: 28 Sec. 16.10.340. Creation of fund. (a) There is a commercial fishing revolving 29 loan fund to carry out the purpose of AS 16.10.300 - 16.10.370, except that the fund 30 may not be used to make loans under AS 16.10.310(a)(1)(E). 31 (b) Money in the fund may be used by the legislature to make appropriations
01 for costs of administering AS 16.10.300 - 16.10.370, except for costs associated with 02 loans under AS 16.10.310(a)(1)(E). 03 (c) If the commissioner determines that the fund contains money that is excess 04 to that needed under (a) and (b) of this section to carry out the purpose of 05 AS 16.10.300 - 16.10.370, then the commissioner may use the excess money to carry 06 out the purpose of AS 16.10.500 - 16.10.560. 07 * Sec. 5. AS 16.10.342(c) is amended to read: 08 (c) The commissioner may expend money credited to the foreclosure expense 09 account when necessary to protect the state's security interest in collateral on loans 10 granted under AS 16.10.300 - 16.10.370, except loans under AS 16.10.310(a)(1)(E), 11 or to defray expenses incurred during foreclosure proceedings after a default by an 12 obligor. 13 * Sec. 6. AS 16.10 is amended by adding a new section to read: 14 Sec. 16.10.345. Community quota entity revolving loan fund. (a) The 15 community quota entity revolving loan fund is created. The commissioner may use the 16 fund for loans made under AS 16.10.310(a)(1)(E) after June 30, 2011, and for 17 administrative and other costs associated with those loans. 18 (b) The foreclosure expense account is established as a special account in the 19 community quota entity revolving loan fund. The commissioner may expend money 20 credited to the foreclosure expense account when necessary to protect the state's 21 security interest in collateral on loans made under AS 16.10.310(a)(1)(E) after 22 June 30, 2011, or to defray expenses incurred during foreclosure proceedings after a 23 default by an obligor. 24 * Sec. 7. AS 16.10.350(a) is amended to read: 25 (a) The commissioner shall administer the commercial fishing revolving 26 loan fund and the community quota entity revolving loan fund. 27 * Sec. 8. This Act takes effect July 1, 2011.