HB 304: "An Act relating to the Alaska microloan revolving loan fund and loans from the fund."

00 HOUSE BILL NO. 304 01 "An Act relating to the Alaska microloan revolving loan fund and loans from the 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 $35,000 [OR MORE], 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 [SIX] 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 two [ONE] percentage points [POINT], but which may 06 not be less than four [six] 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. 11 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 APPLICABILITY. AS 44.33.960, as amended by sec. 1 of this Act, and 14 AS 44.33.965, as amended by sec. 2 of this Act, apply to loan applications made on or after 15 the effective date of this Act.