Section 06.20.230. Maximum interest permitted.

   (a)  A licensee may lend any sum of money not exceeding $25,000 and may charge, contract for, and receive on the loan interest at a rate not exceeding three percent a month on that part of the unpaid principal balance of a loan not in excess of $850; two percent a month on the unpaid principal balance exceeding $850 but not exceeding $10,000; and at a rate agreed by contract on the remainder of any unpaid principal balance exceeding $10,000 but not exceeding $25,000.
   (b) Notwithstanding the provisions of (a) of this section, a licensee who makes open-end loans under this chapter may charge, contract for, and receive interest at a rate not exceeding three percent a month on that part of the unpaid principal balance of a loan not in excess of $850; two percent a month on the unpaid principal balance exceeding $850 but not exceeding $10,000; and at a rate agreed by contract on the remainder of any unpaid principal balance exceeding $10,000 but not exceeding $25,000.
   (c) Interest on loans under (b) of this section shall be computed according to the actuarial method on the entire unpaid principal balance as determined under AS 06.20.285(b).

Authorities

6.20.240; 6.20.250; 6.20.260; 6.20.270; 6.20.285; 6.20.320;18.80.250

Notes

Implemented As

3 AAC 12.080

References

3 AAC 02.129
AS 6.20.240 .240">Sec. 06.20.240. Loans for purpose of obtaining higher interest.
AS 6.20.250 .250">Sec. 06.20.250. Payments and interest.
AS 6.20.260 .260">Sec. 06.20.260. Charges prohibited.
AS 6.20.270 .270">Sec. 06.20.270. Requirements for making and payment of loans.
AS 6.20.285 .285">Sec. 06.20.285. Open-end loans.
AS 6.20.320 .320">Sec. 06.20.320. Civil penalties.
AS 18.80.250 Unlawful financing practice.

History

(Sec. 16(a) ch 73 SLA 1955; am Sec. 5 ch 94 SLA 1969; am Sec. 7 ch 71 SLA 1978; am Sec. 2 ch 84 SLA 1979; am Sec. 3 ch 63 SLA 1980; am Sec. 1, 2 ch 99 SLA 1982)