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HB 188: "An Act relating to the interest that may be charged by express agreement."

00                             HOUSE BILL NO. 188                                                                          
01 "An Act relating to the interest that may be charged by express agreement."                                             
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 45.45.010(b) is amended to read:                                                                   
04            (b)  Interest may not be charged by express agreement of the parties in a                                    
05       contract or loan commitment that is more than the greater of 10 percent or five                               
06       percentage points above the annual rate charged member banks for advances by the                                  
07       12th Federal Reserve District on the day on which the contract or loan commitment is                              
08       made. A contract or loan commitment in which the principal amount exceeds $25,000                                 
09       is exempt from the limitation of this subsection.                                                                 
10    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
11 read:                                                                                                                   
12       APPLICABILITY. This Act does not apply to contracts or loan commitments entered                                   
13 into before the effective date of this Act.