1. (a) Complete applications will be considered by the board.

2. (b) The board may approve an application if

   1. (1) the borrower cannot repay the loan according to its existing terms from agricultural and non-agricultural income and liquidation of assets;
   2. (2) the board determines, based on the financial information, that the borrower can repay the loan if restructured; and
   3. (3) restructuring the loan is expected to increase the return to the state.

3. (c) As a condition of approval of an application, the board may require a borrower to

   1. (1) provide additional collateral;
   2. (2) obtain and maintain life, casualty, liability, title, or other insurance;
   3. (3) procure a co-borrower;
   4. (4) agree to other terms and conditions that the board considers necessary to secure the loan.

4. (d) The board may deny an application if the borrower

   1. (1) has not complied with all terms, except payment terms, of any agreement with the department;
   2. (2) has not complied with the conditions of a permit required by the state or federal government for the borrower's agricultural operations; or
   3. (3) submits an application that contains false or misleading information or omits material information.

(Eff. 10/23/88, Register 108; am 6/1/2001, Register 158)

Authority: AS 03.09.040, AS 03.10.020, AS 03.10.030, AS 03.10.033