(a) State participation in a loan to a business may not be more than $3,000,000.
(b) The loan shall be secured by acceptable collateral and may not exceed 75 percent of the appraised value of the collateral offered as security.
(c) The rate of interest may not exceed nine and one-half percent a year on the unpaid balance of the state's share of the loan.
(d) A loan of $150,000 or more under AS 45.81.100 - 45.81.190 must be participated in by a financial institution in an amount which is not less than 20 percent of the total amount of the loan. A loan of less than $150,000 does not require participation by a financial institution.
(e) The participating financial institution shall administer and service the loan for a reasonable fee not exceeding one-half of one percent.
(f) The lien of the state is a first lien to the extent of its portion of the total loan and the participating financial institution shall have a first lien to the extent of its portion of the total loan.
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