Alaska governs the interest rates in the state under Title 45, Chapter 45, Article 1 of Alaska Statutes. Section 45.45.010 prescribes the legal rate of interest in the state as 10.5 percent per annum. Parties in a contract or loan commitment may charge, by express agreement, an interest rate over five percent above the legal rate fixed by the state. Both these limitations on the rate of interest do not apply to a contract or loan commitment in which the principal amount exceeds $ 25,000. This is an exception, under Section 45.45.010 (b), to the prescribed statutory limits on rates of interest.
Section 45.45.020 prohibits any higher rates of interest. Higher rates of interests are known as usurious interests. By the authority of Section 45.45.030, a person paying usurious interest can recover double the amount of the interest paid. This amount can be recovered from the person receiving the increased interest payment and such actions must be brought within two years after the payment.
Section 9.30.070 prescribes the interest rates on judgments. The rate of interest on judgments and decrees for payment of money, including prejudgment interest, is three percent points above the 12th Federal Reserve District discount rate in effect on January 2 of the year in which the judgment or decree is entered. The interest rate on the judgment or decree based on a contract action is the rate specified in the contract.
Any percent of ownership or profits above the interest rate cannot be required or accepted by a bank, credit union, savings and loan institution, pension fund, insurance company, or mortgage company. This limitation, under Section 45.45.010 (f), does not apply to a loan if its principal amount is $1,000,000 or more and the term of the loan is five years or more. The limitation also exempts a negatively amortizing loan secured by owner-occupied real property originated under certain approved or sponsored programs.
Alaska Stat. § 45.45.010
Legal rate of interest; prepayment 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.
(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, or to a negatively amortizing loan secured by owner-occupied real property originated under a program approved or sponsored by
(1) the federal government, including congressionally chartered national corporations; or
(2) the state if
(A) the real property that secures the loan is not subject to forced sale provided the owner has not violated the terms of the loan agreement including terms regarding
(i) payment of property taxes;
(ii) payment of hazard or fire insurance premiums;
(iii) keeping the property in reasonable repair;
(iv) not vacating the property for a period longer than 12 months;
(B) the owner may not be evicted from the real property that secures the loan unless a term of the loan agreement regarding a matter listed in (A)(i) — (iv) of this paragraph has been violated;
(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.
Alaska Stat. § 45.45.020
Higher rate of interest prohibited
A person may not, directly or indirectly, receive in money, goods, or things in action, or in any other manner, a greater sum or value for the loan or use of money, or upon contract founded upon a bargain, sale, or loan of wares, merchandise, goods, chattels, lands, and tenements, than is prescribed in AS 45.45.010 — 45.45.070.
Alaska Stat. § 45.45.030
Action for recovery of double amount of usurious interest paid
If interest greater than that prescribed in AS 45.45.010 and 45.45.020 is received or collected, the person paying it may, by action brought within two years after the payment, recover from the person receiving the payment double the amount of the interest received or collected.
Alaska Stat. § 45.45.040
Usurious rate as working forfeiture of entire interest
If, in an action brought on a contract, the court determines that a rate of interest has been contracted for greater than is authorized by AS 45.45.010 — 45.45.070, either directly or indirectly, in money, property, or other valuable thing, or that a gift or donation of money, property, or other valuable thing has been made or promised to be made to a lender or creditor, or to a person for the lender or creditor, directly or indirectly, by the borrower or debtor, or a person for the borrower or debtor, the design of which is to obtain for money so loaned, or for debts due or to become due, a rate of interest greater than that specified by AS 45.45.010 — 45.45.070, the rate of interest is usurious and works a forfeiture of the entire interest on the debt. The court shall give judgment for the amount due, without interest, on the sum loaned or the debt contracted, against the defendant and in favor of the plaintiff and against the plaintiff for costs of action, whether the action is contested or not.
Alaska Stat. § 09.30.070
Interest on judgments; prejudgment interest
(a) Notwithstanding AS 45.45.010, the rate of interest on judgments and decrees for the payment of money, including prejudgment interest, is three percentage points above the 12th Federal Reserve District discount rate in effect on January 2 of the year in which the judgment or decree is entered, except that a judgment or decree founded on a contract in writing, providing for the payment of interest until paid at a specified rate not exceeding the legal rate of interest for that type of contract, bears interest at the rate specified in the contract if the interest rate is set out in the judgment or decree.
(c) Prejudgment interest may not be awarded for future economic damages, future noneconomic damages, or punitive damages.