This bill amends existing laws related to the Alaska Commercial Fishing and Agriculture Bank, specifically concerning the bank's ability to make loans to individuals in the commercial fishing industry. It establishes that the Department of Commerce, Community, and Economic Development will purchase nonvoting, preferred shares from the bank to facilitate these loans, which must be secured by limited entry permits. The loans will have a fixed term of 15 years and a capped interest rate, ensuring that the interest does not exceed the prime rate plus two percentage points or 5.25% annually. Additionally, the bank is required to provide detailed reports on each loan originated or refinanced, including financial comparisons and borrower information, which will be reviewed by the department.

Furthermore, the bill includes a provision for the bank to repurchase the shares after 20 years, with the commissioner having the authority to appoint a receiver if the bank fails to do so. It also mandates that if the projected interest earnings from the loans are less than the par value of the shares purchased, the bank must buy back the shares within 30 days. The section regarding the share purchase will be repealed on January 1, 2027, and the act will take effect immediately.

Statutes affected:
SB0156C, AM CSSB 156(FIN), introduced 05/16/2025: 44.81.010, 44.81.215, 44.88.599, 44.33.650, 44.33.690