3 AAC 170.080. Interest rate

Until October 1, 1993, the interest rate applicable to the participation interest in a loan which the division purchases under 3 AAC 170.030 must be seven percent per annum. After October 1, 1993, the interest rate applicable to the participation interest in a loan which the division purchases under 3 AAC 170.030 must be a fixed rate of interest equal to one percent per annum above the prime rate of interest published in The Wall Street Journal on the Friday before the date the division signs a commitment letter to purchase a participation interest in the loan under 3 AAC 170.030(a) , except that in no event may the interest rate be less than six percent per annum. The rate of interest applicable to the portion of the loan not purchased by the division under 19 AAC 70.030 is set by the eligible lender but may not exceed a market rate determined by the division at the time the division signs a commitment letter under 3 AAC 170.130(a) . The eligible lender may determine whether to calculate interest on the basis of a 365-day year and the actual number of days elapsed or on the basis of a 360-day year consisting of twelve 30-day months or on any other basis conventionally used in the banking industry.

History: Eff. 1/19/93, Register 125

Authority: AS 44.33.765

AS 44.33.770

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