Section 3 AAC 106.220 - Review by authority(a) Upon receipt of a completed application and other information requested or required, the authority will review the application.(b) The authority, after reviewing the application, will make a determination that includes the following: (1) written comments analyzing whether (A) the money will be used to pay the costs of activities that are eligible under AS 42.45.020 and the applicant is an eligible borrower under AS 42.45.020;(B) the project will meet the needs of the area to be served by the project and will benefit the area;(C) the project is technically feasible;(D) alternatives to the project exist that would result in extension of electric service by a different method, or by an entity other than the applicant, which could reasonably be expected to provide, within a time schedule comparable to the project, electric service at a lower cost to the consumer;(E) the applicant has applied for, or has been awarded, necessary permits or certificates;(F) the project is financially feasible;(G) the applicant has the ability to provide from money other than the proceeds of the loan an amount equal to that required for acquisition and installation of one transformer, one span of line, one pole, and one service drop as required for each customer for whom immediate service is expected to be provided;(H) the needs of, and benefits to, the area to be served by the project are greater than the needs of, and benefits offered to, other areas of the state by a project for which sponsors may also seek loan money from the authority if there is not sufficient money in the rural electrification revolving loan fund for both projects, if this determination can be made based on information existing at the time of the authority's review, considering factors such as the number of customers to be served by the project, the cost to serve each customer, and the availability of alternative sources of capital to the respective utilities; and(I) the applicant has, or will have, sufficient revenue from all sources to repay the loan;(2) a statement setting out proposed loan terms and conditions; and(3) other comments that the authority considers appropriate.(c) If the authority approves the loan application, the authority will prepare a written decision and deliver a copy of its decision to the applicant. The decision will (1) indicate whether there are conditions that the applicant must satisfy before the authority will make the loan to the applicant; and(2) include proposed loan terms.(e) If the authority approves an application, the authority will prepare a loan agreement and other appropriate documentation to reflect the terms of the loan sufficient, as determined by the authority to assure repayment of the loan in accordance with its terms, and to provide for other matters the authority considers appropriate in connection with the loan. The authority will not disburse the proceeds of the loan to the borrower until the borrower has entered into the loan agreement with the authority.Eff. 2/16/96, Register 137; am 3/25/2005, Register 173Before 2/16/96, Register 137, the substance of 19 AAC 96.220 was set out in former 3 AAC 94.220 and 3 AAC 94.240. The history note of 19 AAC 96.220 does not reflect the history of 3 AAC 94.220 and 3 AAC 94.240.
Authority:AS 42.45.020
AS 42.45.030
AS 44.83.080