3 AAC 99.110. Application; eligibility resolution

(a) To request the authority's assistance under the conduit revenue bond program, a person must submit an application to the authority on a form provided by the authority. The application must be signed by the applicant and, if known at the time of submission of the application, by a proposed purchaser of the bonds.

(b) The application must contain information sufficient to allow the authority to determine whether the proposed project and the applicant appear to be eligible to participate in the program under AS 44.88 and whether interest on the authority's bonds issued for the proposed project would be excluded from gross income for federal income tax purposes under the Internal Revenue Code of 1986. The applicant must submit a nonrefundable $500 fee to the authority with the application.

(c) The authority will review the application and will make a preliminary determination of whether the proposed project and applicant are eligible to participate in the conduit revenue bond program under AS 44.88 and whether interest on the authority's bonds issued for the project would be excluded from gross income for federal income tax purposes under the Internal Revenue Code of 1986.

(d) If the authority determines under (c) of this section that the proposed project and applicant are eligible to participate in the conduit revenue bond program under AS 44.88 and that interest on the authority's bonds issued for the project would be excluded from gross income for federal income tax purposes under the Internal Revenue Code of 1986, the authority will continue to process the application as provided in this subsection. The authority will transmit a summary of the application and its preliminary determination to the board of directors. If the board of directors determines to authorize the authority to continue the application process with the applicant, the board will adopt an eligibility resolution. An eligibility resolution is a statement of intent by the authority to issue revenue bonds if conditions specified in the resolution are satisfied by the applicant. The authority will notify the applicant of the action taken by the board of directors.

(e) If the authority determines under (c) of this section that the proposed project and applicant are eligible to participate in the conduit revenue bond program under AS 44.88 but that interest on the authority's bonds issued for the project would not be excluded from gross income for federal income tax purposes under the Internal Revenue Code of 1986, the authority will notify the applicant of such determinations and will continue to process the application as provided in 3 AAC 99.120.

(f) If the authority determines under (c) of this section that the proposed project or applicant is not eligible to participate in the conduit revenue bond program under AS 44.88, the authority will notify the applicant of such determination. The applicant may appeal that determination to the board of directors by delivering to the authority a notice of appeal. The authority must receive the notice of appeal not more than 30 days after the date on which the authority notified the applicant of its determination. The authority will transmit the notice of appeal, a summary of the application, and the authority's preliminary determination to the board of directors. The board of directors will make the final determination of whether to reject the application of ineligibility or to proceed with processing the application under 3 AAC 99.120.

History: In effect before 1988; am 1/11/88, Register 106; am 11/30/90, Register 118; am 2/11/99, Register 150; am 11/1/99, Register 153; am 8/8/2003, Register 168

Authority: AS 44.88.080

AS 44.88.085

AS 44.88.095

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