C-PACER is a great opportunity for capital providers because they are secure investments. Like property tax lien, the surcharge lien securing the C-PACER financing has priority over other liens on the property. Therefore, the risk of loss from non-payment of a C-PACER loan is minimal compared to most other types of loans.
C-PACER provides lenders with an attractive new product to assist existing and new customers in addressing an almost universal pent-up demand for needed commercial and industrial property equipment modernization. In order to protect the interests of holders of existing mortgage loans on the property, the Alaska C-PACER statute requires their written consent to the C-PACER surcharge as a condition to obtaining a C-PACER loan. Importantly, the C-PACER surcharge does not accelerate in the case of a delinquency or default.
