(a) Except as provided in (b) and (c) of this section, a loan under Alaska Stat. § 16.10.890 – 16.10.945

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Terms Used In Alaska Statutes 16.10.915

  • action: includes any matter or proceeding in a court, civil or criminal. See Alaska Statutes 01.10.060
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • person: includes a corporation, company, partnership, firm, association, organization, business trust, or society, as well as a natural person. See Alaska Statutes 01.10.060
  • property: includes real and personal property. See Alaska Statutes 01.10.060
  • state: means the State of Alaska unless applied to the different parts of the United States and in the latter case it includes the District of Columbia and the territories. See Alaska Statutes 01.10.060
(1) may not exceed

(A) $100,000 a year for an applicant under Alaska Stat. § 16.10.910 (a)(1); or
(B) $1,000,000 a year for an applicant under Alaska Stat. § 16.10.910 (a)(2);
(2) may not, unless extended under Alaska Stat. § 16.10.905, exceed a term of

(A) 20 years for an applicant under Alaska Stat. § 16.10.910 (a)(1); or
(B) 30 years for an applicant under Alaska Stat. § 16.10.910 (a)(2);
(3) may not bear interest at a rate greater than the prime rate, as defined in Alaska Stat. § 44.88.599, plus one percentage point, but which may not be less than five percent a year or more than nine percent a year;
(4) must be secured by a first priority lien on collateral acceptable to the department; and
(5) may not be made to a person who has a past due child support obligation established by court order or by the child support services agency under action to establish support duty; required notice” class=”unlinked-ref” datatype=”S” sessionyear=”2023″ statecd=”AK”>Alaska Stat. § 25.27.160 – 25.27.220 at the time of application.
(b) Subsequent loans may be made to a borrower under

(1)Alaska Stat. § 16.10.910 (a)(1), if the total of the balances outstanding on the loans received by the borrower does not exceed $300,000; or
(2)Alaska Stat. § 16.10.910 (a)(2), if the total of the balances outstanding on the loans received by the borrower does not exceed $1,000,000.
(c) A loan under Alaska Stat. § 16.10.910 may be made for the purchase of boats or vessels determined to be integral to the operation of the farm or hatchery.
(d) For a loan made under Alaska Stat. § 16.10.890 – 16.10.945 , the department may provide a reduction of the interest rate of not more than two percent if at least 50 percent of the loan proceeds are used by the borrower for purchasing products manufactured or produced in the state. When the department offers a reduction under this subsection, the department shall provide the reduction to all loan applicants who meet the criterion described in this subsection. In this subsection, “manufactured or produced” means processing, developing, or making an item into a new item with a distinct character and use.
(e) The department may not make a loan to an applicant under Alaska Stat. § 16.10.910 (a)(2) for a hatchery or shellfish enhancement project unless the department determines that the hatchery or enhancement project will

(1) be managed in a financially viable manner that is reasonably expected to result in repayment of the loan; and
(2) provide a significant contribution to common property fisheries or otherwise benefit the public interest.
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