AK SB156

Department of Commerce, Community, and Economic Development will purchase nonvoting, preferred shares from 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 must be secured by limited entry fishing permits as collateral, carry a fixed 15-year term, and have a fixed interest rate capped at either prime rate plus 2 percentage points or 5.25% annually, whichever is lower

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

Department will conduct a one-time review of loan interest earnings, and if projected savings are less than the share purchase value, the bank must buy back the difference within 30 days

Section 1 provisions are repealed January 1, 2027; act takes effect immediately