1. (a) For any financing under the SETS program and fund that is in the form of a guarantee, the applicant must pay the authority a guarantee fee in the amount the authority in its discretion determines to be appropriate. The authority will inform the applicant of the guarantee fee in the commitment letter issued for a guaranty.

2. (b) The authority may set the guarantee fee as a one-time fixed amount, a one-time percentage of the amount guaranteed, a recurring annual fixed amount, a recurring annual percentage of the amount guaranteed, or a combination of these kinds of amounts. In setting a guarantee fee, the authority will consider the following:

   1. (1) the amount and duration of the guarantee and any other conditions of the guarantee;
   2. (2) the nature and credit standing of the applicant;
   3. (3) the nature and economic and financial viability of the qualified energy development;
   4. (4) the security provided to the authority for the issuance of the guaranty;
   5. (5) the risk to the authority in providing the guaranty;
   6. (6) the financial benefit the applicant or the qualified energy development receives from the authority's guaranty; and
   7. (7) any other commercially reasonable factors the authority determines to have a bearing on setting the guarantee fee.

(Eff. 4/25/2013, Register 207)

Authority: AS 44.88.085, AS 44.88.670, AS 44.88.680