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- Alaska Statutes.
- Title 10. Corporations and Associations
- Chapter 13. Alaska Bidco Act
- Section 290. Business Practice Standards and Reserves.
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AS 10.13.290. Business Practice Standards and Reserves.
- (a) A licensee shall transact its business in a safe and sound manner and shall maintain itself in a safe and sound
- (b) In determining whether a licensee is transacting business in a safe and sound manner, the department may not consider
the risk of providing financing assistance to a business, unless the department determines that the risk is great
enough to demonstrate gross mismanagement when compared with the return that can be realistically expected.
- (c) Notwithstanding the other provisions of this section, the department may
- (1) if the amount of the financing assistance is unduly large in relation to the total assets or the total shareholder
equity of the licensee, determine that a licensee's financing assistance to a single business or group of affiliated
businesses violates (a) of this section or constitutes an unsafe or unsound act;
- (2) require that a licensee maintain a reserve in the amount of anticipated losses;
- (3) require that a licensee have in effect a written financing assistance policy approved by the licensee's board of
directors, including credit evaluation and other matters; the department may not require that a licensee adopt a
financing assistance policy that contains standards that prevent the licensee from exercising needed flexibility in
evaluating and structuring financing assistance to businesses on an individual basis.
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