(a) Security for the repayment of loans under this chapter will be considered acceptable if:
- (1) the Corporation obtains a satisfactory deed of trust, subject to permitted encumbrances, on the subject property, and, when necessary, other legal documents;
- (2) the borrower shows marketable title to the subject property in accordance with AS 18.56.480(b) and (c) or in any other manner acceptable to the executive director; and
- (3) the borrower purchases insurance that complies with the requirements of the sellers' guide.
- (b) The Corporation may accept the assignment in trust of a leasehold estate as security.
- (c) The Corporation may accept other security than that described in this section if the executive director determines that the other security will adequately protect the Corporation.
(Eff. 5/7/93, Register 130; am 9/25/2002, Register 164)
Authority: AS 18.56.088, AS 18.56.400, AS 18.56.500