(a) The authority may guarantee a loan under AS 44.88.700 - 44.88.799 if the (1) loan (A) is commercially reasonable; (B) contains payment provisions satisfactory to the authority; and (C) is secured by acceptable collateral; (2) project (A) is allocated new markets tax credits by a qualified community development entity; (B) promotes economic development in the state; and (C) is not a housing project; (3) borrower demonstrates the ability to repay the loan from either or both of the following: (A) net cash flow of the borrower; (B) proceeds from the sale of current assets that are collateral for the loan if the sale or receipt of proceeds from the sale is an event that creates a payment obligation; in this subparagraph, 'current asset' means property that will be or could be converted into cash within one year in the normal operation of a business; (4) term of the loan does not exceed 10 years; (5) loan is originated with and serviced by a financial institution. (b) The authority may provide a guarantee for up to 100 percent of a loan that qualifies under AS 44.88.700 - 44.88.799.
Alaska Legal Code