Alaska Convertible Promissory Note Overview
A convertible promissory note in Alaska is a debt instrument commonly used in startup financing that converts into equity upon a triggering event. As a security, it must comply with both federal regulations (SEC Rule 506 under Regulation D) and Alaska's state securities laws. The primary state exemption is: AS 45.56 exemption.
Alaska requires Form D filing required when issuing convertible notes. The state provides standard protections for note holders through its securities regulatory framework. The interest rate must comply with Alaska's 10.5% usury limit, though most convertible note rates (2-8%) fall well below this threshold. Companies should work with an attorney familiar with Alaska securities law to ensure full compliance.
Available
Securities exemption
Required
SOS filing
10.5%
Usury rate
Standard
Investor protections
Alaska Requirements
Alaska has specific requirements for convertible promissory notes that both parties should understand before entering into the agreement.
- Interest Rate: Must not exceed Alaska's usury limit of 10.5%
- Written Agreement: Must be in writing and signed by the borrower (maker)
- Clear Terms: Principal amount, interest rate, payment schedule, and maturity date must be clearly stated
- Default Terms: Late fees, grace periods, and acceleration clause must comply with Alaska law
- Governing Law: The note should specify Alaska as the governing jurisdiction
How to Create a Alaska Convertible Promissory Note
Follow these steps to create a Alaska-compliant convertible promissory note using our template.
Enter Party Information
Provide the full legal names and Alaska addresses of both the lender (payee) and borrower (maker). Include the date the note is being executed.
Define Loan Terms
Specify the principal amount, interest rate (within Alaska's 10.5% usury limit), payment schedule, and maturity date. Our template calculates the payment breakdown automatically.
Set Default and Late Payment Terms
Define the grace period, late fee amount, acceleration clause triggers, and notice requirements. Our Alaska template includes compliant default language.
Sign and Execute
The borrower must sign and date the note. Consider notarization for added legal protection. Both parties should retain a copy. If secured by collateral, file the appropriate security instrument with Alaska's recording office.
Securities Compliance in Alaska
When issuing convertible promissory notes in Alaska, you must comply with the state securities exemption (AS 45.56 exemption), file the required Form D filing required, ensure the interest rate stays within the 10.5% usury limit, and follow Alaska's investor protection requirements (standard protections). Federal Form D must be filed with the SEC within 15 days of the first sale. Our Alaska-specific template ensures compliance with both state and federal securities regulations.
Alaska Usury Warning
Alaska's usury limit is 10.5%. Charging interest above this rate can render your promissory note unenforceable and may subject the lender to penalties under Alaska law. Our template automatically validates your interest rate against Alaska's current limits.
Alaska Convertible Promissory Note FAQ
Answers to common questions about convertible promissory notes in Alaska.
Official Alaska Resources
Use these official resources to verify Alaska requirements for your convertible promissory note.
Other Alaska Promissory Note Types
Need a different type of promissory note for Alaska? We offer state-specific templates for every type of promissory note.
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Alaska Secured Promissory Note
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Create your Alaska Convertible Promissory Note in under 5 minutes.
Answer a few questions and download a Alaska-compliant document, ready for the state agency.