- (a) A loan committee consists of one or more persons appointed by the director to act on a loan request.
- (b) A loan committee shall consider the recommendations of the loan officer assigned to process the application and any other relevant information. A loan committee shall also consider the applicant's eligibility for a loan, financial and credit record, ability to repay, and operating plan, and the adequacy of collateral offered to secure the loan.
- (c) After considering a loan request as described in section (b), a loan committee shall approve or deny the loan request, approve the loan request subject to modification, or table the loan request subject to obtaining additional information.
(d) A loan committee may impose reasonable conditions on the approval of a loan, including:
- (1) additional collateral to secure the loan;
- (2) additional guarantors; and
- (3) subordination of prior lienholders' rights to the interest of the rural development initiative fund.
- (e) A loan committee shall establish the term of a loan and repayment schedule within the limitations set by 3 AAC 99.870.
- (f) If a loan request is denied, significantly modified, or tabled by a loan committee, the loan committee shall provide the applicant with a statement explaining reasons for the action.
- (g) A material misstatement or omission of fact made by an applicant constitutes grounds for denial of a loan request.
(Eff. 2/8/2001, Register 158)
Authority: AS 44.88.600, AS 44.88.610, AS 44.88.620