Section 3 AAC 106.120 - Terms of loans(a) The terms of a loan made by the authority from the power project fund will be determined by the authority and will comply with the following conditions: (1) the loan must bear interest at the rate determined under AS 42.45.010(f)(2)(A), unless the authority determines, based on information the applicant provides under 3 AAC 106.100(d), that a lower interest rate will allow a project to meet the criteria for financial feasibility under 3 AAC 106.125(b);(2) the loan must mature on the date and pay interest on the dates and in the amounts determined by the authority, but the final maturity date may not extend beyond 50 years or the expected and specified productive life of the project being financed, whichever is less; the authority will use the following standards to determine the length of the loan, taking into consideration the expected productive life of a project unless the authority determines that a different expected productive life is indicated: (A) the term of loans will be up to 20 years for reconnaissance studies and for feasibility studies, preconstruction engineering and project design, or constructing, equipping, modifying, improving, and expanding of (i) diesel generation facilities;(ii) wind, geothermal, and waste heat recovery facilities;(iv) wood-fired steam-generation facilities;(v) bulk fuel storage facilities;(vi) energy efficiency and conservation projects;(vii) solar thermal, solar photovoltaic, hydrokinetic, energy storage, and transmission facilities; and(viii) alternative energy facilities;(B) the term of loans will be up to 50 years for feasibility studies, preconstruction engineering and project design, or constructing, equipping, modifying, improving, and expanding of (i) coal-fired steam-generation facilities; and(ii) hydroelectric generation facilities; and(3) the loan must be supported by appropriate documentation that may include a loan agreement, bonds, notes, or other documentation, evidencing to the authority's satisfaction that the loan is secured by one or more of the following: (A) a pledge of the revenues of the borrower or the project that may be subordinate to operating and maintenance expenses and certain other expenses of the borrower or the project as specified by the authority;(B) a lien, mortgage, security interest, collateral agreements, or other encumbrance on the project or other assets, rights, or interests of the borrower; or(C) a pledge of the taxing power of the borrower.(b) The requirements of (a)(3) of this section do not apply to a loan to an applicant regulated by the Regulatory Commission of Alaska under AS 42.05 if the applicant has a history of repaying long-term loans and demonstrates to the authority that it has the capacity to repay the loan obtained from the authority.Eff. 2/16/96, Register 137; am 10/16/2009, Register 192; am 4/8/2015, Register 214, July 2015Before 2/16/96, Register 137, the substance of 19 AAC 96.120 was set out in former 3 AAC 94.100. The history note of 19 AAC 96.120 does not reflect the history of 3 AAC 94.100.
Authority:AS 42.45.010
AS 44.83.080