Section 3 AAC 80.445 - Lending practices(a) The department will not approve a loan to refinance long-term debt. Interim financing is not considered long-term debt if the term is 24 months or less and the promissory note or the original agreement was executed less than 12 months before the department received the application.(b) An applicant may not use loan proceeds for the reimbursement of purchases made more than 12 months before the department received the application.(c) The department will set the interest rate for loans under 3 AAC 80.410 - 3 AAC 80.480 on the first day of each calendar quarter. The interest rate set for a quarter will remain in effect until the department changes the rate, will not exceed the maximum or minimum interest allowed under AS 16.10.915(a)(3), and will be established at the nearest one-quarter point. The interest rate set will be based on the bank prime rate during the previous quarter as defined in AS 44.88.599.(d) A loan's interest rate is the interest rate in effect at the time the loan commitment is made and will be at a fixed rate for the loan's term.(e) At the time the loan is made, the department may consider the following factors in setting repayment terms of the loan as allowed under AS 16.10.920: (1) the time needed to build stock;(2) the financial need and viability of the permit holder;(3) public or economic benefit;(4) any other factor the department considers appropriate to preserve the security of the state and its investment.(f) The department may modify the loan deferral period at any time during the first six years of the loan as allowed under AS 16.10.920.Eff. 10/16/2012, Register 204; am 7/24/2024, Register 251, October 2024Authority:AS 16.10.905
AS 16.10.915
AS 16.10.920