Alaska Statutes
Alaska Stat. § 45.45.010 (2026)
Legal rate of interest; prepayment of interest
✓ current as of July 2026
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Sec. 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 the greater of 10 percent or 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(c) [Repealed, § 3 ch 84 SLA 1973.]
(d) [Repealed, § 2 ch 94 SLA 1981.]
(e) [Repealed, § 4 ch 146 SLA 1974.]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, 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;
(C) neither the estate nor any heir of the former owner may be compelled to pay a deficiency judgment related to the loan; and
(D) the estate or an heir of the former owner has a right of first refusal and may either pay off the loan balance in full, if the former owner had equity in the property, or pay a sum not to exceed 95 percent of the value of the property at the time of exercise of the right of first refusal as determined by an independent real estate appraiser licensed under AS 08.87.
(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.
(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 the greater of 10 percent or 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, § 3 ch 84 SLA 1973.]
(d) [Repealed, § 2 ch 94 SLA 1981.]
(e) [Repealed, § 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, 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;
(C) neither the estate nor any heir of the former owner may be compelled to pay a deficiency judgment related to the loan; and
(D) the estate or an heir of the former owner has a right of first refusal and may either pay off the loan balance in full, if the former owner had equity in the property, or pay a sum not to exceed 95 percent of the value of the property at the time of exercise of the right of first refusal as determined by an independent real estate appraiser licensed under AS 08.87.
(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.
Notes of Decisions
Cited in 52
cases (2 in the last 5 years), 1970–2026 · leading case: Riley v. N. Com'l Co., Mach. Div., 648 P.2d 961 (Alaska 1982).
Riley v. N. Com'l Co., Mach. Div., 648 P.2d 961 (Alaska 1982). “AS 45.45.010(a). [14] Alternatively, parties may agree to an applicable rate of interest, providing that such a rate does not exceed the rate proscribed by application of the variable *967 interest rate formula set forth in AS 45.”
Guin v. Ha, 591 P.2d 1281 (Alaska 1979). “*1284 Alaska’s general interest statute, AS 45.45.010, provides in subsection (a) that the rate of interest in the state is eight per cent per year on money after it is “due.”
Bibi v. Elfrink, 408 P.3d 809 (Alaska 2017). “than is prescribed in AS 45.45.010.” The superior court found that Elfrink’s original loan to Bibi and Raja was not usurious because the additional $4,000 fee Bibi was obligated to pay over the life of the loan was a “service fee or funding fee” rather than disguised interest.”
Cox v. Est. of Steve Cooper, 426 P.3d 1032 (Alaska 2018). “INTRODUCTION This case concerns the interpretation of Alaska's usury statute, AS 45.45.010. The question on appeal is whether the statute provides for a maximum interest rate on contract or loan commitments in which the principal amount exceeds $25,000.”
State, Com. Fisheries Entry Comm'n v. Carlson, 65 P.3d 851 (Alaska 2003). “As to prejudgment interest, the State asserted that AS 45.45.010, which had been invoked in Carlson II as the basis for a determination of whether prejudgment interest was due, 40 only set the maximum interest rate and did not specifically authorize prejudgment interest.”
State v. Phillips, 470 P.2d 266 (Alaska 1970). “Alaska’s general interest statute, AS 45.45.010, uses language similar to AS 09.”
Nat'l Bank of Alaska v. J. B. L. & K. of Alaska, Inc., 546 P.2d 579 (Alaska 1976). “evinces an intent that prejudgment interest be awarded more liberally than prior judicial interpretations of AS 45.45.010 would have called for. When the legislature determined that interest should run against the state from the time amounts were due, rather than from the time…”
Morris v. Morris, 724 P.2d 527 (Alaska 1986). “This case presents the question of whether a trial court has discretion to award prejudgment interest, at the rate set by AS 45.45.010(a), 1 to the party to whom money is due in the context of a divorce proceeding.”
Rockstad v. Erikson, 113 P.3d 1215 (Alaska 2005). “As mentioned, Erikson claimed he had loaned $26,000 to Rockstad, thus putting the loan outside the reach of AS 45.45.010. Rockstad argued at summary judgment, however, that his transaction with Erikson involved two separate loans, each loan below the statute’s $25,000 limit.”
McGalliard v. Liberty Leasing Co. of Alaska, Inc., 534 P.2d 528 (Alaska 1975). “During the summer of 1968 Joseph and Mickey McGalliard, d/b/a Import Palace, entered discussions with Robert Ryland [2] concerning relocation of their gift and novelty store.”
Drickersen v. Drickersen Ex Rel. Drickersen, 604 P.2d 1082 (Alaska 1979). “Prior to September 12, 1976, AS 45.45.010(a) authorized interest of only six percent per annum.”
Beech Aircraft Corp. v. Harvey, 558 P.2d 879 (Alaska 1976). “In Risdal the court reduced the interest rate award to 4% because of prosecution delays. It appears, however, that the trial judge has discretion in such federal cases as to the interest awarded, and awards have gone as high as 12%.”
— Alaska Stat. § 45.45.010(a) — 24 cases
Guin v. Ha, 591 P.2d 1281 (Alaska 1979). “*1284 Alaska’s general interest statute, AS 45.45.010, provides in subsection (a) that the rate of interest in the state is eight per cent per year on money after it is “due.”
Riley v. N. Com'l Co., Mach. Div., 648 P.2d 961 (Alaska 1982). “AS 45.45.010(a). [14] Alternatively, parties may agree to an applicable rate of interest, providing that such a rate does not exceed the rate proscribed by application of the variable *967 interest rate formula set forth in AS 45.”
Morris v. Morris, 724 P.2d 527 (Alaska 1986). “This case presents the question of whether a trial court has discretion to award prejudgment interest, at the rate set by AS 45.45.010(a), 1 to the party to whom money is due in the context of a divorce proceeding.”
Drickersen v. Drickersen Ex Rel. Drickersen, 604 P.2d 1082 (Alaska 1979). “Prior to September 12, 1976, AS 45.45.010(a) authorized interest of only six percent per annum.”
Beech Aircraft Corp. v. Harvey, 558 P.2d 879 (Alaska 1976). “In Risdal the court reduced the interest rate award to 4% because of prosecution delays. It appears, however, that the trial judge has discretion in such federal cases as to the interest awarded, and awards have gone as high as 12%.”
— Alaska Stat. § 45.45.010(a)(1) — 1 case
Alyeska Pipeline Serv. Co. v. Anderson, 669 P.2d 956 (Alaska 1983).
— Alaska Stat. § 45.45.010(b) — 11 cases
Riley v. N. Com'l Co., Mach. Div., 648 P.2d 961 (Alaska 1982). “AS 45.45.010(a). [14] Alternatively, parties may agree to an applicable rate of interest, providing that such a rate does not exceed the rate proscribed by application of the variable *967 interest rate formula set forth in AS 45.”
Bibi v. Elfrink, 408 P.3d 809 (Alaska 2017). “than is prescribed in AS 45.45.010.” The superior court found that Elfrink’s original loan to Bibi and Raja was not usurious because the additional $4,000 fee Bibi was obligated to pay over the life of the loan was a “service fee or funding fee” rather than disguised interest.”
Rockstad v. Erikson, 113 P.3d 1215 (Alaska 2005). “As mentioned, Erikson claimed he had loaned $26,000 to Rockstad, thus putting the loan outside the reach of AS 45.45.010. Rockstad argued at summary judgment, however, that his transaction with Erikson involved two separate loans, each loan below the statute’s $25,000 limit.”
Fikes v. First Fed. Sav. & Loan Ass'n of Anchorage, 533 P.2d 251 (Alaska 1975).
Cox v. Est. of Steve Cooper, 426 P.3d 1032 (Alaska 2018). “INTRODUCTION This case concerns the interpretation of Alaska's usury statute, AS 45.45.010. The question on appeal is whether the statute provides for a maximum interest rate on contract or loan commitments in which the principal amount exceeds $25,000.”
— Alaska Stat. § 45.45.010(g) — 1 case
State, Dep't of Revenue, Child Support Enf't Div. v. Green, 983 P.2d 1249 (Alaska 1999).
— Alaska Stat. § 45.45.010(h) — 1 case
Crissey v. Alaska USA Fed. Credit Union, 811 P.2d 1057 (Alaska 1991).
— Alaska Stat. § 45.45.010(i) — 1 case
LaPerriere v. Shrum, 721 P.2d 630 (Alaska 1986).
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