Free Alaska Promissory Note Template

An Alaska promissory note is a written, signed promise to repay a loan on agreed terms. In Alaska, the note’s principal amount matters more than usual, because it decides whether a state interest cap applies at all.

Alaska’s interest rules sit in AS 45.45.010. The Alaska Supreme Court quoted the current version, in effect since 2011, in its 2018 decision in Cox v. Estate of Cooper.

The Rate When None Is Agreed

Under AS 45.45.010(a), the rate of interest in Alaska is 10.5% a year on money after it is due, except as subsection (b) provides. According to the court, subsection (a) covers only debts where no interest rate was specified.

The Cap on Notes of $25,000 or Less

AS 45.45.010(b) limits interest set by express agreement. Under it, the rate can’t be more than the greater of:

• 10%
• Five percentage points above the rate the 12th Federal Reserve District charges member banks for advances, on the day the contract or loan commitment is made

However, the same subsection exempts any contract or loan commitment with a principal amount over $25,000.

Recovering Excess Interest

AS 45.45.030 lets a person who paid interest above the legal limit recover double that interest from the person who received or collected it.

Deed of Trust Sales

If real property secures the note through a deed of trust, AS 34.20.100 is worth knowing. It applies after a trustee sells the property under the deed of trust. From then on, no further action or judgment may be taken against the maker, surety, or guarantor for a deficiency.

No statutory cap applies. In 2018, the Alaska Supreme Court held that AS 45.45.010 doesn’t stop parties from agreeing to any interest rate when the principal exceeds $25,000. The case involved a $325,000 note at 20% a year, which the court found was not usurious.

In reaching that result, the court pointed to two earlier decisions on how the threshold is counted:

• In Rockstad v. Erikson, one $26,000 note paid out through two checks was treated as one loan over $25,000.
• In Bibi v. Elfrink, once modifications brought a single loan’s principal over $25,000, the cap no longer applied.

Smaller loans are a different story. For a principal of $25,000 or less, check the Federal Reserve rate on your signing date before you set a rate above 10%. Either way, write the full principal clearly on your Alaska promissory note.

Tip: Planning to lend in stages or change the loan later? Ask a local attorney how the principal will be counted, since the $25,000 line decides whether the cap applies.

A little preparation keeps your note on the right side of the threshold. Work through these steps:

1. Confirm the total principal, and decide whether the money is paid out at once or in stages.
2. For a loan of $25,000 or less, compare your rate with the cap using the Federal Reserve advance rate on the day you sign.
3. Write the annual interest rate as a number, and date the note.
4. If a deed of trust will secure the loan, review AS 34.20.100 with an attorney first. It limits deficiency claims after a trustee sale.
5. Have the borrower and any cosigner sign, then give everyone a copy.
6. Keep a record of each payment and how much of it went to interest.

The core terms match any note. Even so, Alaska gives you a reason to be precise about dates and amounts.

• Borrower and lender names and addresses
• Total principal amount
• Annual interest rate
• Date the note is signed
• Payment schedule and maturity date
• Late fee and default terms
• Collateral or deed of trust details, if secured
• Signatures

Document Genius’s guided form walks you through each term, so your Alaska promissory note template is ready to download or e-sign in minutes.