3 AAC 99.320 - Application for authority participation
(a) A business
enterprise may apply for a loan under the taxable umbrella loan program by
contacting an originator. The originator shall review the proposed use of the
loan, the applicant's eligibility, and any other matters the originator may
determine necessary. When the originator, with the concurrence of the business
enterprise, decides it is appropriate to do so, the originator and the
applicant shall prepare an application for authority participation in the
loan.
(b) An application for
authority participation must be submitted by the originator to the authority
along with a non-refundable $1,100 fee. If the authority issues a commitment to
purchase a participation in the originator's loan, and the loan commitment
issued by the authority is accepted and signed by the originator and borrower
and returned to the authority, the non-refundable $1,100 application fee will
be credited against the authority's commitment fee as required by
3
AAC 99.360(b). The authority may
require the originator to include with the application any of the following:
(1) a letter of transmittal;
(2) a loan summary, including originator
approval at the appropriate level of authority;
(3) a list of other unpaid loans to the
applicant or, if the applicant is not a sole proprietorship, to any member of
the applicant's business enterprise, from the state or other public corporation
of the state along with applicant certification that each unpaid loan is
current and no other loans exist;
(4) a current credit report of the applicant
and the guarantor, if any;
(5) a
signed current balance sheet and year-to-date profit and loss statement on the
applicant, not more than 90 days old from the date of application, fiscal year
end balance sheet and profit and loss statement for the prior three years on
the applicant; current balance sheet and federal income tax return for the
prior two years on all guarantors and co-borrowers;
(6) copies of the applicant's federal income
tax returns for the prior three years, if the balance sheet and profit and loss
statement required from the applicant in (5) of this subsection are not audited
by a certified public accountant;
(7) copies of the earnest money receipt and
agreement, option to purchase, contract to purchase, or invoice for purchase of
land, land and improvements, or tangible personal property related to the
project or qualified energy development;
(8) a copy of a lease or easement for land
and improvements related to the project or qualified energy development and, in
the case of a hydropower project licensed or to be licensed by the Federal
Energy Regulatory Commission, a copy of the documents designating the project
boundary with a lease or easement to be completed before closing giving the
applicant control of the area within the project boundary;
(9) a detailed description of the project or
qualified energy development and a detailed description of real or tangible
property to be acquired for the project or qualified energy
development;
(10) a detailed
estimate of the cost of construction;
(11) an estimate of the number of jobs to be
created or retained by this project or qualified energy development;
(12) if the loan is to be secured by real
property, a written appraisal report acceptable to the authority estimating the
value of the real property
(A) if the total
loan amount is equal to or less than $1,000,000, the appraisal may be a summary
appraisal report;
(B) if the total
loan amount is greater than $1,000,000, the appraisal must be a detailed
appraisal describing the information analyzed, the appraisal procedures
followed, and the reasoning that supports the analysis, opinions expressed, and
conclusions in conformity with current professional standards;
(13) if the loan is for the
purchase of tangible personal property, an appraisal in a format acceptable to
the authority prepared by an appraiser who is acceptable to the
authority;
(14) copies of leases or
agreements to lease or renew a lease between the applicant and tenants of the
project or qualified energy development, including a list of tenants, lease
rates, terms, and options;
(15) a
financial feasibility analysis satisfactory to the authority;
(16) an environmental risk assessment
satisfactory to the authority, followed by an environmental audit if required
by the authority;
(17) if the loan
is to finance improvements in energy efficiency, an analysis of the energy
efficiencies that are expected to be achieved, including the units of energy
expected to be saved over the life of the improvements and the dollar savings
expected to be realized; and
(18)
any other information considered necessary by the authority to evaluate the
application.
(c) If the
authority issues bonds in respect of a loan, the authority may charge a loan
participation bond issuance fee for the costs of issuance of the
bonds.
(d) If the application
concerns a loan for a qualified energy development, the authority, in addition
to the requirements of (b) of this section, may require the originator to
provide any of the following:
(1) a
description of the technology to be used in the qualified energy
development;
(2) the purpose of the
qualified energy development;
(3) a
description of the type of qualified energy development as being one for
(A) the transmission, generation,
conservation, or storage or distribution of electricity;
(B) the transmission, generation,
conservation or distribution of heat;
(C) liquefaction, regasification,
distribution, storage, or use of natural gas, excluding a natural gas pipeline
project for transporting natural gas from the North Slope or Cook Inlet to
market;
(D) distribution of refined
petroleum products;
(E) storage of
refined petroleum products;
(4) if the applicant is a regulated or
tariffed utility under AS 42.05, documents establishing that status; and
(5) a copy of any contract for the
sale of power, electricity, or heat from the qualified energy development for
which the loan is sought.
Notes
Even though the amendment of 3 AAC 99.320 was effective 5/16/2023. it was not published until Register 248, January 2024.
Authority:AS 44.88.080
AS 44.88.085
AS 44.88.155
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