Alaska Demand Promissory Note Overview
A demand promissory note in Alaska is a flexible loan agreement where the lender can request full repayment at any time. There is no fixed maturity date — the loan remains outstanding until the lender makes a formal demand. The maximum interest rate in Alaska is 10.5%.
10.5% maximum or 5% above Federal Reserve discount rate. Demand notes are commonly used in Alaska for family loans, loans between friends, shareholder loans, and informal business financing where both parties want flexibility.
Regarding demand notice in Alaska: Reasonable notice required; no fixed statutory period. The statute of limitations for collecting on a promissory note in Alaska is 3 years (oral), 6 years (written), though the start date for demand notes can vary.
10.5%
Usury rate cap
On Demand
No fixed maturity
3 years
Statute of limitations
30 Days
Recommended notice
Alaska Legal Requirements
Alaska has specific requirements for demand promissory notes:
Important: Alaska Usury & Demand Rules
Alaska's maximum interest rate is 10.5%. Reasonable notice required; no fixed statutory period. Specify a clear notice period in your note to avoid disputes.
- Written Agreement: Must be in writing and signed by the borrower
- Demand Clause: Clearly state the note is “payable on demand”
- Notice Period: Specify days borrower has to pay after written demand (30-90 days recommended)
- Compliant Interest Rate: Must not exceed Alaska's 10.5% usury cap
- Delivery Method: Specify how demand must be delivered (certified mail recommended)
- Governing Law: Specify Alaska as the governing jurisdiction
Making a Demand in Alaska
When the lender is ready to call in the loan, they must follow proper demand procedures:
Prepare the Demand Letter
State the total amount owed (principal + accrued interest), reference the original note, and specify the deadline for payment
Send via Certified Mail
Send the demand letter by certified mail with return receipt to prove delivery under Alaska law
Wait the Notice Period
Allow the borrower the full notice period specified in the note (or a reasonable time if not specified) to arrange payment
Pursue Collection if Unpaid
Demand letter, then suit in district or superior court
Collection Procedures in Alaska
If the borrower fails to pay after a proper demand, the lender can pursue legal remedies in Alaska.
| Aspect | Alaska Rule |
|---|---|
| Usury Rate | 10.5% |
| Demand Notice | Reasonable notice required; no fixed statutory period |
| Statute of Limitations | 3 years (oral), 6 years (written) |
| Collection Procedure | Demand letter, then suit in district or superior court |
Sample Alaska Demand Promissory Note
Below is a preview of our Alaska-specific demand promissory note template.
STATE OF ALASKA
DEMAND PROMISSORY NOTE
Payable on Demand — No Fixed Maturity
FOR VALUE RECEIVED, the undersigned promises to pay ON DEMAND to the order of Lender the sum of $[Amount]
LENDER:
Name: [Lender Name]
Address: [Alaska Address]
BORROWER:
Name: [Borrower Name]
Address: [Alaska Address]
TERMS
Interest: [Rate]% per annum (max 10.5% in AK)
Payable within 30 days of written demand by Lender
Alaska Demand Promissory Note FAQ
Answers to common questions about demand promissory notes in Alaska.
Official Alaska Resources
Official resources for Alaska lending laws and court procedures.
Other Alaska Promissory Note Types
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