Loan money will be disbursed when
- (1) a security interest in the collateral on behalf of the State has been perfected, except that, in the case of a mortgage on a documented vessel, this requirement may be satisfied by the establishment of the mortgage as a preferred mortgage under the provisions of the Ship Mortgage Act of 1920, (46 U.S.C. 911 - 984);
- (2) the borrower has complied with the marine insurance requirements contained in an instrument signed by the borrower;
- (3) requirements of the loan committee have been met; and
- (4) the borrower is in compliance with all other provisions of the loan documents and this chapter.
(Eff. 9/11/85, Register 95)
Authority: AS 16.10.310, AS 16.10.320