1994 Alaska Statutes
TITLE 45 TRADE AND COMMERCE
Chapter 45.45. TRADE PRACTICES
Article 01 INTEREST
Sec. 45.45.010. LEGAL RATE OF INTEREST.
(a) The rate of interest in the state is 10.5 percent a year and no more on money after it is due except as provided in (b) of this section.
(b) Interest may not be charged by express agreement of the parties in a contract or loan commitment that is more than five percentage points above the annual rate charged member banks for advances by the 12th Federal Reserve District on the day on which the contract or loan commitment is made. A contract or loan commitment in which the principal amount exceeds $25,000 is exempt from the limitation of this subsection.
(c) Repealed, Sec. 3 ch 84 SLA 1973.
(d) Repealed, Sec. 2 ch 94 SLA 1981.
(e) Repealed, Sec. 4 ch 146 SLA 1974.
(f) A bank, credit union, savings and loan institution, pension fund, insurance company or mortgage company may not require or accept any percent of ownership or profits above its interest rate. This subsection does not apply to a loan if the principal amount of the loan is $1,000,000 or more and the term of the loan is five years or more.
(g) Loan contracts and commitments covering one- to four-family dwellings may be prepaid without penalty, except federally insured loans that require a prepayment penalty.
(h) If the limitations on interest rates provided for in this section are inconsistent with the provisions of any other statute covering maximum interest, service charges or discount rates then the provisions of the other statute prevail.
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