Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 16 - Division of Community and Regional Affairs › Chapter 170 - Rural Development Initiative Fund › 3 AAC 170.030 - Purchase of participations

Current through May 31, 2024
(a) The division
				will, in its discretion, use money in the rural development initiative fund to
				purchase a participation interest in an eligible loan from an eligible lender
				in accordance with the procedures established in this section. The division
				will purchase the participation interest at a price equal to principal amount
				of the participation interest.
(b)
				The division will purchase a participation interest in an eligible loan under
				(a) of this section only from an eligible lender and only following (1) receipt
				and approval by the division of an application submitted to the division by the
				eligible lender that has made or proposes to make the loan and (2) receipt by
				the division of the amounts described in (d) of this section. The eligible
				lender may submit the application in the form of a letter or in any other form
				that the eligible lender desires as long as the application (1) contains
				information sufficient for the division to reasonably determine that the loan
				satisfies or will satisfy the requirements of this chapter, (2) is accompanied
				by the documentation described in
				3 AAC 170.030(c), (3) states whether
				the loan is expected to be guaranteed by the Alaska Industrial Development and
				Export Authority under
				3 AAC 99.700 -
				3 AAC 99.785, and (4) is accompanied by a nonrefundable
				application fee of $100.
(c) Unless
				waived by the division, an eligible lender must submit to the division each of
				the following documents with respect to an application described in
				3 AAC 170.030(b) before the division
				will agree to purchase a participation interest in the loan to which the
				application relates:
(1) a loan summary,
				including the eligible lender's loan approval;
(2) a copy of the signed loan application
				accompanied by a written release from the borrower consenting to the delivery
				to the division of the information required by this chapter;
(3) a financial statement, including a profit
				and loss statement of the borrower's business, that is signed by the borrower
				and is current to within 90 days of the date on which the division receives the
				application;
(4) a description of
				the purpose for which the loan will be made;
(5) a current report of the credit history of
				the borrower and of any guarantors;
(6) copies of the borrower's federal income
				tax returns or financial statements prepared by a public accounting firm for
				the preceding three fiscal years of the borrower;
(7) a description and evaluation of the
				collateral to be used to secure the loan, including
(A) if the loan is to be secured by real
				property, a narrative appraisal report acceptable to the division estimating
				the fair market value of the real property in a format consistent with
				standards established by the American Institute of Real Estate Appraisers or
				Society of Real Estate Appraisers including a cost approach, a market approach,
				and an income approach, or
(B) if
				the loan is to be secured by tangible personal property, an appraisal in a
				format acceptable to the division prepared by an appraiser who is acceptable to
				the division;
(8) a
				finding that the borrower has adequate projected cash flow to pay all amounts
				to become due on the loan when and as those amounts become due;
(9) an environmental risk assessment
				satisfactory to the division followed by an environmental audit if required by
				the division;
(10) a description of
				other nonstate sources committed for use on the project or enterprise for which
				money from a loan will be used;
(11) any other information considered
				necessary by the division in order to evaluate the borrower and borrower's
				business.