Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 13 - Alaska Industrial Development and Export Authority › Chapter 99 - Commercial and Industrial Financing › Article 5 - Development Finance Program › 3 AAC 99.580 - Terms of financing

Current through May 31, 2024
Development project financing the authority provides for a
					 development project the authority will not own and operate must satisfy the
					 following requirements unless the authority, in its discretion, approves
					 deviating from these requirements:
(1)
				  the principal amount of a development project financing may not exceed 75
				  percent of the estimated cost of the project;
(2) unless modified as provided in (3) of
				  this section, the development project financing the authority provides must be
				  secured by a mortgage that is a first lien on the real property in fee simple
				  or on a leasehold estate where the development project is located;
(3) the authority may review and approve
				  other security provisions and arrangements as well as encumbrances against the
				  real property that do not affect the authority's security; the authority may
				  provide financing for a development project where the security for the
				  financing will be subordinate to a lien or security interest in favor of senior
				  financing if the project applicant demonstrates to the satisfaction of the
				  authority that the additional debt can be repaid from the revenue earned by the
				  project;
(4) the terms and
				  conditions of any land lease that secures the financing the authority provides
				  must be acceptable to the authority, and the term of the lease must exceed the
				  effective term of the financing by at least five years;
(5) the financing the authority provides must
				  be secured by a security interest in the equipment and personal property that
				  are part of, or are used in connection with, the development project, and the
				  financing the authority provides may be secured by any other collateral the
				  authority requires;
(6) the
				  development project financing the authority provides must require complete
				  amortization provisions and require periodic payments by the project
				  applicant;
(7) the term of the
				  financing the authority provides may not exceed the estimated useful life of
				  the development project;
(8) the
				  project applicant must provide and pay for title insurance the authority
				  requires and must insure the improvements on the real property where the
				  development project is to be located, with responsible companies and in such
				  amounts and against such risks as the authority requires;
(9) if required by the authority, the project
				  applicant must obtain a guarantee for repayment of the financing the authority
				  provides from the following persons:
(A) a
				  partner or member of the project applicant;
(B) a joint venture with the project
				  applicant;
(C) any stockholder of
				  the capital stock of the project applicant;
(D) the parent entity if the project
				  applicant is a subsidiary; or
(E)
				  any such other credit support from any such other party as the authority may
				  accept;