1. (a) An application for financial assistance under this chapter must be made under oath as to the truth and accuracy of its contents.
2. (b) At the time the applicant initiates the application process by submitting to the executive director any of the information required in subsection (c) of this section, the applicant must pay the application fee and the estimated direct costs of the authority for evaluating its application. At the discretion of the executive director, a partial advance payment of the estimated direct costs may be accepted, provided the applicant agrees to a payment schedule established by the executive director. All direct costs incurred by the authority must be reimbursed before the authority will consider the applicant's bond resolution or, at the discretion of the authority, the outstanding balance due from the applicant for these costs may be paid from the financing fee set out under 15 AAC 118.060(a). Direct costs will be credited against the financing fee paid to the authority under 15 AAC 118.060(a); however, the credit may not exceed 50 percent of the financing fee. For purposes of this subsection, the nonrefundable application fee and the annual fee set out under 15 AAC 118.060(b) are not direct costs.

3. (c) For informational purposes and informal review, the executive director shall receive, acknowledge receipt and notify the authority that an applicant has initiated the application process. However, the authority will not consider an application for purposes of acceptance under 15 AAC 118.030 until the executive director confirms that the following information and data have been received:

   1. (1) the amount and type of financing requested;
   2. (2) a general description of the existing and proposed medical facility, the existing and proposed equipment for the medical facility, and the services offered or to be offered;
   3. (3) a copy of the applicant's current Certificate of Need issued by the Department of Health;
   4. (4) a detailed description of the projected use of the requested financing;
   5. (5) an opinion of counsel, who must be an active member in good standing of the Alaska Bar Association, stating that the proposed financing is for a statutorily authorized purpose of the authority, and specifying the purpose;
   6. (6) a statement by applicant that an existing medical facility complies with, or a proposed medical facility will comply with, all state requirements relating to public buildings, structures, grounds, works and improvements;
   7. (7) a statement by applicant that all contract awards will meet the requirements of competitive bidding;
   8. (8) a statement by applicant describing the status of any application under section 1122 of the 1972 amendments to the Social Security Act for the applicant's medical facility or proposed medical facility;
   9. (9) a nonrefundable application fee of $1,000;
   10. (10) unless applicant is an individual, in which case the individual's authorization is required, a resolution by the board of directors of applicant, signed by the chairperson and secretary, authorizing a named representative to submit an application for financing to the authority and to release information and copies of corporate documents requested or required by the authority or the executive director of the authority;
   11. (11) the name, address and statements of the experience of the operator or proposed operator, if other than the applicant, of the medical facility or proposed medical facility, in managing or operating medical facilities;
   12. (12) a statement by the applicant and operator or proposed operator that under Alaska law it is authorized to conduct business in Alaska;
   13. (13) statements by the applicant and the operator or proposed operator that they will individually and jointly abide by the requirements of AS 18.26 and the regulations adopted under that title and chapter;
   14. (14) a statement that the medical facility or proposed medical facility will not be used for any unlawful purpose;
   15. (15) a letter of determination from the Internal Revenue Service that the applicant qualifies as a 501(c)(3) organization under the Internal Revenue Code; and
   16. (16) any additional information or data requested by the executive director or the authority.

4. (d) When the executive director determines that an applicant has complied with the requirements of (a), (b) and (c) of this section, the executive director shall

   1. (1) request written verification from the Department of Health that the applicant has met all of the current requirements of AS 18.07, even for those applicants holding a certificate of need issued under sec. 4 ch. 275, SLA 1976, which exempts holders from complying with the current requirements for purposes other than financial assistance from the authority; and
   2. (2) receive and solicit offers for services from potential financial advisors and other persons helpful or necessary to the authority's evaluation of an application.

(Eff. 9/28/79, Register 71)