Alaska Secured Promissory Note Overview
A secured promissory note in Alaska is a loan agreement where the borrower pledges specific collateral to guarantee repayment. Alaska law governs the creation, perfection, and enforcement of security interests under the Uniform Commercial Code (UCC) as adopted by the state. The maximum interest rate for most loans in Alaska is 10.5%.
10.5% maximum or 5% above Federal Reserve discount rate, whichever is greater. Lenders should verify that the agreed-upon interest rate complies with Alaska's usury laws before finalizing the note. Charging interest above the legal limit can result in severe penalties, including forfeiture of interest and potential civil liability.
For secured notes involving real property in Alaska, non-judicial (deed of trust) and judicial foreclosure applies. Understanding your state's foreclosure process is critical because it determines the timeline, costs, and lender's rights in the event of borrower default.
10.5%
Usury rate cap
Department of Natural Resources
UCC filing office
Non-judicial
Foreclosure type
Yes
Deficiency judgment
Alaska Legal Requirements
Alaska has specific requirements for secured promissory notes. Here's what you need to ensure your note is enforceable under AK law:
Important: Alaska Usury Laws
Alaska's maximum interest rate is 10.5%. 10.5% maximum or 5% above Federal Reserve discount rate, whichever is greater. Exceeding the legal limit may void the interest portion of your note or result in civil penalties.
Essential Elements
- Written Agreement: The note must be in writing, signed by the borrower, and clearly state the loan terms
- Compliant Interest Rate: Must not exceed Alaska's 10.5% usury cap
- Collateral Description: Specific, identifiable description of all pledged property
- Security Agreement: Grant of security interest signed by the borrower (debtor)
- UCC-1 Filing: Filed with the Department of Natural Resources, Recorder's Office for personal property collateral
- Default Provisions: Clear events of default, cure periods, and remedies including foreclosure/repossession rights
UCC Filing in Alaska
To perfect a security interest in personal property in Alaska, the lender must file a UCC-1 financing statement with the Department of Natural Resources, Recorder's Office. This public filing puts other creditors on notice and establishes the lender's priority in the collateral.
Prepare the UCC-1 Form
Include the debtor's exact legal name, secured party name, and detailed collateral description
File with the Department of Natural Resources
Submit online or by mail with the required filing fee
Monitor and Renew
UCC-1 filings last 5 years; file a continuation statement before expiration
Terminate After Payoff
File a UCC-3 termination statement when the loan is fully repaid
Alaska Foreclosure & Repossession
Alaska uses non-judicial (deed of trust) and judicial foreclosure for real property collateral. For personal property (vehicles, equipment, inventory), the lender generally has the right to repossess the collateral without court action, provided it can be done without breaching the peace.
Regarding deficiency judgments in Alaska: Yes, within 90 days of sale. The lender must follow Alaska's specific procedures for disposing of collateral in a commercially reasonable manner, providing proper notice to the borrower before any sale.
| Aspect | Alaska Rule |
|---|---|
| Foreclosure Type | Non-judicial (deed of trust) and judicial |
| Deficiency Judgment | Yes, within 90 days of sale |
| Statute of Limitations | 3 years (oral), 6 years (written) |
| Usury Rate | 10.5% |
| UCC Filing Office | Department of Natural Resources, Recorder's Office |
Sample Alaska Secured Promissory Note
Below is a preview of our Alaska-specific secured promissory note. Your customized document will include all terms compliant with AK law.
STATE OF ALASKA
SECURED PROMISSORY NOTE
Collateral-Backed Loan Agreement
LENDER (Secured Party):
Name: [Lender Name]
Address: [Alaska Address]
BORROWER (Debtor):
Name: [Borrower Name]
Address: [Alaska Address]
LOAN TERMS
Principal: $[Amount]
Interest: [Rate]% per annum (max 10.5% in AK)
Collateral: [Description]
Alaska Secured Promissory Note FAQ
Answers to common questions about secured promissory notes, UCC filings, and collateral requirements in Alaska.
Official Alaska Resources
Use these official resources to verify Alaska requirements, file UCC documents, and access state legal information.
Other Alaska Promissory Note Types
Need a different type of promissory note for Alaska? We offer state-specific templates for every type.
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