3 AAC 99.720 - Application
(a) The authority will accept an application
for a guarantee only from the financial institution that will make the loan and
that has the ability to originate, service and collect the loan. An application
must contain information sufficient to allow the authority to determine whether
the loan is eligible for a guarantee under the limitations stated in
AS
44.88.500-44.88.599. An application must be
accompanied by evidence, satisfactory to the authority, that the financial
institution has conducted a credit investigation and by a statement of the
financial institution's determinations based upon the credit
investigation.
(b) The application
for a loan guarantee of $100,000 or less for a new loan may consist of the
following:
(1) a loan summary, including the
financial institution's loan approval;
(2) certification from the bank that a credit
check has been performed, that the borrower's credit record is satisfactory to
the bank, that any other bank-held debt is current, and that all statutory
requirements have been met; and
(3)
such other information the authority considers necessary to evaluate the
borrower and the project.
(c) The application for a loan guarantee of
more than $100,000 for a new loan must contain
(1) a loan summary, including the financial
institution's loan approval;
(2) a
copy of the signed loan application;
(3) a balance sheet and a profit-and-loss
statement of the borrower's business, that is current to within 90 days of the
application date and signed by the borrower;
(4) a description of the project;
(5) a current credit report of the borrower
and of any other guarantors and co-borrowers;
(6) copies of the borrower's federal income
tax returns or financial statements for the preceding three fiscal
years;
(7) a detailed description
of the use of the loan proceeds;
(8) a description and evaluation of the
collateral to be used to secure the loan;
(A)
if the loan is to be secured by real property, a written appraisal report
acceptable to the authority estimating the fair market value of the real
property;
(i) if the total loan amount is
equal to or less than $1,000,000, the appraisal shall be a summary appraisal
report prepared in accordance with the most current edition of the Uniform
Standards of Professional Appraisal Practice established by the Appraisal
Standards Board of The Appraisal Foundation;
(ii) 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;
(B) if the loan is to be secured by tangible
personal property, an appraisal in a format acceptable to the authority
prepared by an appraiser who is acceptable to the authority;
(9) a finding that the borrower
has adequate projected cash flow to service the debt;
(10) an environmental risk assessment
satisfactory to the authority, followed by an environmental audit if required
by the authority; and
(11) any
other information considered necessary by the authority in order to evaluate
the borrower and the project.
(d) The application for a guarantee of a loan
to refinance existing debt must contain the items described or listed in
3
AAC 99.720(a), (b) and (c)(1) -
(c)(11) and must also contain the following:
(1) a debt schedule that
(A) correlates to the business' latest
balance sheet; and
(B) reflects the
debt to be refinanced, including name of creditor, original loan amount and
loan balance, date of loan, and maturity date, together with statements as to
whether the loan is paid monthly, annually, or otherwise, as to payment status
and payment history of the loan, and as to the collateral that secured the
loan;
(2) an evaluation
completed by the financial institution which illustrates how the guarantee of a
loan to refinance existing debt will satisfy
AS
44.88.525; and
(3) a statement by the financial institution
whether the loan being refinanced has been criticized or classified by any
regulatory agency or internal audit as a high risk or under-collateralized
loan.
(e) The authority
may waive any provision in this section.
(f) Repealed 2/8/2001.
Notes
Even though the amendment of 3 AAC 99.720 was effective 5/16/2023, it was not published until Register 248, January 2024.
Authority:AS 44.88.080
AS 44.88.085
AS 44.88.510
AS 44.88.520
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