Alaska Administrative Code › Title 18 - Environmental Conservation › Chapter 76 - Alaska Clean Water and Drinking Water Revolving Loan Funds › Article 2 - Alaska Drinking Water Fund › 18 AAC 76.255 - Repayment; finance charges

Current through May 31, 2024
(a) Except as
				provided in
				18 AAC 76.230 for a disadvantaged
				system, the amortization schedule for financial assistance from the Alaska
				drinking water fund will be negotiated between the borrower and the department.
				The department will not negotiate an amortization schedule that exceeds 30
				years. Repayment of financial assistance must begin within one year after the
				date of initiation of operation of the facility, or within one year after the
				date of a refinancing under
				18 AAC 76.205(a) (2). The department will apply amortization
				repayments first toward any penalties owed, second toward any fees owed, third
				toward the interest, and fourth toward the principal.
(b) When the department makes an offer of
				financial assistance, the department will establish a fixed finance charge that
				includes the fee specified in
				18 AAC 76.257(a),
				interest, and any adjustment described in
				18 AAC 76.252(a) or (c), as appropriate. The finance charge will
				be assessed on financial assistance as follows:
(1) for a contract term over 20 years and up
				to 30 years, accrual of finance charges begins one year after the date of the
				first payment to the borrower; the department will assess a finance charge at a
				rate of two percent plus 75 percent of The Bond Buyer's Municipal Bond Index's
				Current Day - Yield to Maturity that is greater than four percent as published
				on the date that the department extends the financial assistance offer; the
				finance charge will be determined using the calculation 2 + [0.75 x (Bond Index
				- 4)], where "Bond Index" is equal to The Bond Buyer's Municipal Bond Index's
				Current Day - Yield to Maturity;
(2) for a contract term of five to 20 years,
				accrual of finance charges begins one year after the date of the first payment
				to the borrower; the department will assess a finance charge at a rate of one
				and one-half percent plus 62.5 percent of The Bond Buyer's Municipal Bond
				Index's Current Day - Yield to Maturity that is neater than four percent as
				published on the date that the department extends the financial assistance
				offer; the finance charge will be determined using the calculation 1.5 + [0.625
				x (Bond Index - 4)], where "Bond Index" is equal to The Bond Buyer's Municipal
				Bond Index's Current Day - Yield to Maturity;
(3) for a contract term of less than five
				years, accrual of finance charges begins one year after the date of the first
				payment to the borrower; the department will assess a finance charge of one
				percent plus 50 percent of The Bond Buyer's Municipal Bond Index's Current Day
				- Yield to Maturity that is greater than four percent as published on the date
				that the department extends the financial assistance offer; the finance charge
				will be determined using the calculation 1 + [0.5 x (Bond Index - 4)], where
				"Bond Index" is equal to The Bond Buyer's Municipal Bond Index's Current Day -
				Yield to Maturity;
(4) for
				financial assistance that is repaid within one year after the first payment to
				the borrower, the department will assess a finance charge equal to one-half of
				one percent of the total amount of financial assistance disbursed.