Section 3 AAC 80.420 - Loan committee(a) The director shall appoint a loan committee of one or more persons to act on a loan application.(b) A loan committee may approve, deny, or modify a loan request. If the loan committee requires additional information regarding a loan application, the loan committee may table the loan application until the applicant submits the additional information.(c) A loan committee may impose reasonable conditions on the approval of a loan, including (1) additional collateral to secure the loan;(2) additional guarantors; and(2) subordination of prior lien holders' rights to the interests of the state.(d) A loan committee shall consider the applicant's eligibility for a loan, corporate management, financial and credit record, ability to repay, operating plan, experience, and the adequacy of collateral offered to secure the loan. A loan committee may also consider the recommendation of the loan officer assigned to process the application and any other relevant information.(e) A loan committee may fix the term of a loan and repayment schedule within the limitations set by AS 16.10.915.(f) If a loan request is denied or significantly modified by a loan committee, the loan committee shall provide the applicant with a statement of the reasons for the action and the information relied on.(g) A material misstatement or omission of fact made by an applicant constitutes grounds for denial of a loan request.Eff. 10/16/2012, Register 204; am 7/24/2024, Register 251, October 2024Authority:AS 16.10.905
AS 16.10.915