2010-02-26                     House Journal                      Page 1603
not commit to pay incentive rate rebates on a loan participation for                                                            
more than five years, and the balance of loans subject to rebates would                                                         
be limited to no more than five percent of the outstanding balance of                                                           
all loan participations of the Authority. Finally, the Authority may                                                            
establish a separate account for the incentive rate rebate program. The                                                         
separate account will enable the Authority to more easily account for,                                                          
and pay, rebates owed to loan participation borrowers.                                                                          
                                                                                                                                
Section 3 of the bill will clarify that the Authority may finance, own,                                                         
and operate a percentage of a development finance project, and may                                                              
provide for operation of a project by agreement with other owners.                                                              
Existing statutes of the Authority do not clearly establish that the                                                            
Authority may finance and own an indivisible percentage of a project.                                                           
Clarifying this power will enable the Authority to jointly finance                                                              
development finance projects with partners and other lenders or                                                                 
financiers more easily, and better promote economic development and                                                             
spread project risks.                                                                                                           
                                                                                                                                
Finally, Sections 4 and 5 of the bill will revise the rural development                                                         
initiative fund owned by the Alaska Industrial Development and                                                                  
Export Authority and administered by the Alaska Division of                                                                     
Investments. The purpose of the revisions is to foster the utilization of                                                       
the program in the state by increasing the amount that may be                                                                   
borrowed from the fund. The sections will remove the restriction that a                                                         
borrower may only have one loan but limits a borrower's participation                                                           
in the loan program to an allowable dollar amount. The sections will                                                            
reduce the minimum interest rate that may be charged from six percent                                                           
to four percent.                                                                                                                
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor"                                                                                                                       
                                                                                                                                
HB 411                                                                                                                        
HOUSE BILL NO. 411 by the House Rules Committee by request of                                                                   
the Governor, entitled: