Section 06.20.260. Charges prohibited.

   (a) A further or other charge or amount for an examination, service, brokerage commission, expense, fee, bonus, or other thing may not be directly or indirectly charged, contracted for, or received except
        (1) lawful fees actually paid out by the licensee to a public officer for filing, recording, or releasing any instrument securing the loan, or premiums payable for insurance in lieu of perfecting a security interest if the premiums do not exceed the fees that would otherwise normally be incurred for perfecting, filing, recording, and releasing the security interest, or for transferring certificate of title to a motor vehicle securing the lien or noting a lien on that certificate;
        (2) premiums actually paid out for insurance on any one or combination of the following: pledged property of the borrower, or consumer credit insurance; in this paragraph, "consumer credit insurance" has the meaning given in AS 21.57.160;
        (3) taxable costs and expenses to which the licensee becomes entitled under general law in any court proceedings to collect a loan or to realize on the security after default;
        (4) for loans of $10,000 or less that are secured by an interest in real estate, reasonable costs and fees paid by a licensee for appraisals, surveys, and title insurance or reports;
        (5) for loans over $10,000, whether or not secured by an interest in real estate, reasonable costs and fees paid by a licensee for appraisals, surveys, title insurance or reports, and credit reports;
        (6) a late payment fee of not more than 10 percent of the payment that is due or $25, whichever is less;
        (7) a fee for dishonored checks not to exceed $25 for each dishonored check;
        (8) reasonable attorney fees, actual expenses, and costs incurred in connection with the collection of a delinquent debt or a foreclosure if the collection or foreclosure is referred to an attorney who is not a salaried employee of the licensee and the balance then owing on the debt exceeds $5,000;
        (9) actual expenses and costs incurred in connection with a repossession.
   (b) A licensee may collect the charges permitted under (a) of this section at the time when the loan is made or at any time thereafter.  If any interest, consideration, or charges in excess of those permitted by AS 06.20.230 are charged, contracted for, or received, except as the result of an accidental and bona fide error in computation, the contract of loan is modified as follows: all interest, consideration, or charges involved are voided and a like amount credited to the debtor on the principal of the loan. If the unpaid principal is less than the total of the interest, consideration, and charges, the difference shall be refunded by the lender to the borrower.

Notes

Implemented As

3 AAC 12.080
3 AAC 12.210
3 AAC 12.380

History

(Sec. 16(d) ch 73 SLA 1955; am Sec. 9, 16 ch 71 SLA 1978; am Sec. 5 ch 84 SLA 1979; am Sec. 3 ch 99 SLA 1982; am Sec. 1 ch 39 SLA 1990; am Sec. 1 ch 62 SLA 1995; am Sec. 10 ch 134 SLA 1996)