(a) For a loan that is a guaranteed loan, the division will only purchase a participation interest in the loan that is not the guaranteed portion. The division's participation interest in the loan will not exceed the lesser of
- (1) 20 percent of the entire loan, including the guaranteed portion; or
- (2) the amount described in (c) of this section.
(b) For a loan that is not a guaranteed loan, the division's participation interest in the loan will not exceed the lesser of
- (1) 80 percent of the entire loan; or
- (2) the amount described in (c) of this section.
- (c) In addition to the provisions of (a) and (b) of this section, the division's participation interest in a loan may not exceed $100,000 if the loan is made to an individual or $200,000 if the loan is made to two or more individuals. If the loan is made to a corporation, joint venture, partnership, or other form of business consisting of more than one individual, the division's participation interest in a loan will not exceed $200,000. For a loan that is a guaranteed loan, the amounts described in this subsection will be reduced by any amount required to be deposited in a reserve account for the loan.
(Eff. 1/19/93, Register 125)
Authority: AS 44.33.765, AS 44.33.770