Banking Section What is the legal rate of interest in Alaska?
• The default rate is 10.5 percent after a loan is due. • For loans up to $25,000 the rate is 5 percentage points above the 12th Federal Reserve rate charged to member banks. This rate is commonly referred to as the discount rate. • For loans in excess of $25,000 the rate is set by contract. • Licensees under the Alaska Small Loan Act (AS 06.20) and the Alaska Premium Finance Act (AS 06.40) are permitted by statute to charge interest rates in excess of the legal rate of interest. For more information see: 45.45.10. Alaska Retail Installment Sales Act 45.45.010. Legal Rate of Interest 12th Federal Reserve Discount Rate Does the division supervise/regulate all Alaska banks? No, the state of Alaska only regulates state banks. The Office of the Comptroller of the Currency (OCC) regulates national banks and the Office of Thrift Supervision (OTS) regulates federal thrift banks.
