Alaska Statutes Sec. 45.88.030 - Loan Terms

(a) A loan made under AS 45.88.010 - 45.88.090 may not exceed $50,000. If the requested loan amount exceeds $30,000, the applicant must deliver to the department a document from a financial institution stating that

(1) the applicant has been denied a loan for the same purpose; or

(2) the loan from the financial institution is contingent on the applicant also receiving a loan from the fund.

(b) The duration for repayment of the loan may not exceed 20 years.

(c) [Repealed, Sec. 38 ch 83 SLA 2010].

(d) [Repealed, Sec. 38 ch 83 SLA 2010].

(e) The rate of interest for a loan under AS 45.88.010 - 45.88.090 is the prime rate, as defined by AS 44.88.599 , plus one percentage point, but may not be less than five percent a year.

(f) A loan under AS 45.88.010 - 45.88.090 must be secured by a mortgage or other security instrument in the real property to be improved and a lien on the improvements financed with the loan.

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Last modified: November 15, 2016