Section 3 AAC 101.180 - Lease-purchase and other financing agreements(a) The authority may finance a qualified energy development through the SETS fund by entering into a lease-purchase, sale-leaseback, build-operate-transfer, operate-transfer, or similar financing arrangement with an applicant. However, the authority will not make any financing arrangement for which legislative approval under AS 36.30.085 is required unless the financing arrangement has been approved by the legislature. The authority will not make any financing arrangement that exceeds the capital costs limitation of AS 44.88.690(a)(1) without legislative approval.(b) An applicant seeking to enter into a lease-purchase, sale-leaseback, build-operatetransfer, operate-transfer, or similar financing arrangement shall submit a preliminary application under 3 AAC 101.060 and a full application under 3 AAC 101.070. The preliminary application and the final application should include a statement setting out the financing arrangement being sought with the authority. The authority will consider the application as provided for in 3 Type equation here. AAC 101.090, 3 AAC 101.100, 3 AAC 101.110, and 3 AAC 101.150. The applicant shall pay the authority a nonrefundable application fee of (1) $5,500 for any financing arrangement up to $10,000,000;(2) $11,000 for any financing arrangement from $10,000,000 to $20,000,000;(3) $22,000 for any financing arrangement over $20,000,000. The application fee is nonrefundable but the applicant may apply it against the commitment fee if the authority approves the financing.(c) The terms of any lease-purchase, sale-leaseback, build-operate-transfer, operate-transfer, or similar financing arrangement shall be determined by the authority in its discretion, considering the financing arrangement, the nature and credit standing of the applicant, the nature and economic and financial viability of the qualified energy development, the security provided to the authority, the risk to the authority, and any other commercially reasonable factors the authority may determine to be applicable. The authority will set out the terms of its financing in the commitment letter provided to the applicant. A non-refundable commitment fee is due upon the applicant accepting a commitment letter the authority has provided. The commitment fee is one percent of the principal amount of the financing the authority is providing.(d) At the closing of any financing the authority provides under this section the provisions of 3 AAC 101.140(d) and (e) will apply.Eff. 4/25/2013, Register 207; am 6/28/2018, Register 227, October 2018Even though 3 AAC 101.180 was adopted and effective 4/25/2013, it was not published until Register 207, October 2013.
Authority:AS 36.30.095
AS 44.88.085
AS 44.88.670
AS 44.88.680
AS 44.88.690