Enrolled SB 156: Relating to the Department of Commerce, Community, and Economic Development; relating to the Alaska Commercial Fishing and Agriculture Bank; relating to certain loans made by the Alaska Commercial Fishing and Agriculture Bank; relating to certain commercial fishing loans; and providing for an effective date.
00Enrolled SB 156 01 Relating to the Department of Commerce, Community, and Economic Development; relating 02 to the Alaska Commercial Fishing and Agriculture Bank; relating to certain loans made by the 03 Alaska Commercial Fishing and Agriculture Bank; relating to certain commercial fishing 04 loans; and providing for an effective date. 05 _______________ 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 ALASKA COMMERCIAL FISHING AND AGRICULTURE BANK; LOANS. (a) 09 Subject to legislative appropriation, the Department of Commerce, Community, and 10 Economic Development shall purchase nonvoting, preferred shares issued by the Alaska 11 Commercial Fishing and Agriculture Bank established under AS 44.81.010 for the purpose of 12 enabling the bank to make loans to persons involved in the state's commercial fishing industry 13 under AS 44.81.215. Except as provided in (d) of this section, the bank shall repurchase 14 shares the department purchased under this section 20 years after the purchase. If the bank
01 fails to repurchase the shares 20 years after the purchase by the department, the commissioner 02 of commerce, community, and economic development may appoint a receiver to direct, 03 manage, and operate the bank until the shares have been repurchased. Upon voluntary or 04 involuntary liquidation of the bank, and upon repayment of all legal debts and obligations of 05 the bank, all nonvoting, preferred shares owned by the department have priority for 06 redemption over all other forms and amounts of ownership of the bank. 07 (b) The Alaska Commercial Fishing and Agriculture Bank may not originate or 08 refinance a loan under this section unless the loan is secured, or secured in part, by a limited 09 entry permit issued under AS 16.43 that has been pledged by the holder as collateral. A loan 10 made by the bank using funds provided by the Department of Commerce, Community, and 11 Economic Development's purchase of shares under this section 12 (1) shall have a fixed term of 15 years; 13 (2) shall have a fixed interest rate; 14 (3) may not bear interest 15 (A) exceeding the prime rate, as defined in AS 44.88.599, plus two 16 percentage points; or 17 (B) at a rate of more than 5.25 percent a year. 18 (c) On the effective date of sec. 4, ch. 25, SLA 2024, the Alaska Commercial Fishing 19 and Agriculture Bank shall provide the division within the Department of Commerce, 20 Community, and Economic Development that is responsible for banking and securities a list 21 of each loan originated or refinanced under (b) of this section, with confidential borrower 22 information redacted. The list must include, for each loan, 23 (1) the loan number, principal balance, interest rate, and loan term; 24 (2) a copy of the loan agreement; 25 (3) an amortization schedule, including the comparison made under (4) of this 26 subsection; 27 (4) a comparison of 28 (A) the loan's baseline interest earnings, calculated as the projection of 29 the refinanced or originated loan's interest using the principal and the interest rate in 30 effect for the loan before it was refinanced, or the interest rate and term that the loan 31 would have had if the loan had not been made by the Alaska Commercial Fishing and
01 Agriculture Bank under (b) of this section, amortized over a 15-year term assuming 02 timely loan payments; and 03 (B) the loan's post-refinance or post-origination interest earnings, 04 calculated as the loan's projected interest earnings using the loan's principal, the loan's 05 actual interest rate as originated or refinanced under (b) of this section, and a 15-year 06 term assuming timely loan repayments; and 07 (5) any other information that the division may need to complete the review. 08 (d) Within 120 days after the Alaska Commercial Fishing and Agriculture Bank 09 provides the Department of Commerce, Community, and Economic Development the list 10 required under (c) of this section, the department shall conduct a one-time review of the listed 11 information. If the department determines that the difference in projected interest earnings for 12 all loans originated or refinanced under (b) of this section for the Alaska Commercial Fishing 13 and Agriculture Bank, as calculated under (c) of this section, is less than the par value of the 14 shares purchased by the department under (a) of this section, the department shall request that 15 the bank repay the difference to the department by buying back the requisite quantity of 16 shares. 17 (e) If the Department of Commerce, Community, and Economic Development 18 requests that the Alaska Commercial Fishing and Agriculture Bank buy back the shares under 19 (d) of this section, the bank shall buy back the shares within 30 days. 20 (f) Subject to appropriation, the Department of Commerce, Community, and 21 Economic Development shall purchase shares issued by the Alaska Commercial Fishing and 22 Agriculture Bank under (a) of this section using an amount equal to the amount that was in the 23 former Alaska capstone avionics revolving loan fund (former AS 44.33.650 - 44.33.690) and 24 was unobligated on July 1, 2020. 25 * Sec. 2. Section 1 of this Act is repealed January 1, 2027. 26 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).