(a) The financial institution that holds a loan guaranteed by the authority under Alaska Stat. § 44.88.500 – 44.88.599 shall
(1) service the loan;(2) exercise diligence in collecting amounts due under the loan; and(3) comply with all requirements of the loan guarantee agreement.(b) Amounts received toward satisfaction of a default on a loan guaranteed under Alaska Stat. § 44.88.500 – 44.88.599 shall be allocated between the lender and the fund according to the guaranteed percentage of the loan until the principal balance and accrued interest have been repaid.
