Section 44.88.730 - Conditions of loan guarantee(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.Added by SLA 2012, ch. 61,sec. 2, eff. 6/13/2012.