Alaska Administrative Code
Title 15 - Revenue
Chapter 144 - Municipal Bond Bank Authority
15 AAC 144.020 - Eligibility
Universal Citation: 15 AK Admin Code 15 AAC 144.020
Current through February 27, 2024
(a) The authority will, in its discretion, approve a loan to a municipality only if the loan meets the following criteria:
(1) the authority determines the municipality
to be creditworthy after evaluating the municipality's loan application and any
other information the authority considers relevant; and
(2) the authority determines, on the basis of
the completed application and other information, that the municipality would
have to pay unnecessarily high borrowing costs in an offering of its municipal
bonds to investors because of one or more of the following factors:
(A) the municipality has not issued municipal
bonds or the municipality has little outstanding debt;
(B) investors are unfamiliar with the
municipality because it has been newly incorporated or has experienced recent
rapid growth;
(C) the distance of
the state from capital markets makes the municipality's bonds less attractive
than bonds of a comparable municipality elsewhere in the United States;
or
(D) investors consider the
municipality's bonds to have an element of risk because of apprehension of
possible temporary economic dislocation due to the loss or prospective loss of
a major employer in the municipality.
(b) The authority will, in its discretion, approve a loan not eligible under (a) of this section if the authority determines that the loan will improve the marketability of authority bonds issued to make loans under (a) of this section.
Authority:AS 44.85.005
AS 44.85.080
AS 44.85.095
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