1. (a) The department will, in its discretion, allow an assumption of a loan made under AS 45.81 and this chapter, if the department determines the assumption is in the best interest of the state.
2. (b) A request for an assumption of a loan made under AS 45.81 and this chapter will be processed in the same manner as a loan application. If necessary to evaluate the request, the department will, in its discretion, require that the applicant supply one or more of the items specified in 3 AAC 86.010, before the request will be processed.
3. (c) Wraparound financing that includes a loan made under AS 45.81 and this chapter is prohibited and constitutes a default on the loan.

(Eff. 9/11/85, Register 95; am 8/10/97, Register 143)