11 AAC 39.231. Other conditions of loans

(a) The board may require a borrower to provide life insurance up to the maximum amount due under all fund agreements that are payable to the fund.

(b) The board will require a borrower to provide property insurance on all buildings used as collateral and all other collateral stored in buildings, unless otherwise waived by the board for reasonable cause. The property insurance must be for the amount of the replacement of the collateral, and the fund must be named the loss payee.

(c) In addition to the requirements of (a) and (b) of this section, the board may require other types of insurance needed to protect and secure a loan.

(d) The borrower shall provide title insurance insuring the fund in the amount of the loan secured by real property.

(e) The board may require a personal guarantee to the fund to adequately secure the loan.

(f) The borrower shall pay all costs for processing and closing a loan under AS 03.10 or this chapter.

History: Eff. 12/1/84, Register 92; am 10/27/2002, Register 164

Authority: AS 03.09.040

AS 03.10.020

AS 03.10.030

AS 03.10.050

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