AK HB199

Department of Commerce, Community, and Economic Development shall purchase nonvoting, preferred shares in the Alaska Commercial Fishing and Agriculture Bank to fund loans for commercial fishing industry participants, with the bank required to repurchase shares after 20 years

Loans made through this program must have fixed 15-year terms, fixed interest rates, and interest capped at prime rate plus 2 percentage points or 5.25% annually, whichever is lower

Funding source is unobligated funds from the former Alaska capstone avionics revolving loan fund as of July 1, 2020

Bank must report loan details to the Division of Banking and Securities; if projected interest earnings fall below the state's share purchase value, the bank must buy back the difference in shares within 30 days

Section 1 provisions expire July 1, 2027; Commissioner may appoint a receiver to operate the bank if it fails to repurchase state-owned shares after 20 years