Usury

The rate of interest in the state is 10.5 percent a year and no more on money after it is due. Interest may not be charged by express agreement of the parties in a contract or loan commitment that is more than the greater of 10 percent or five percentage points above the annual rate charged member banks for advances by the 12th Federal Reserve District on the day on which the contract or loan commitment is made. (AS 45.45.010) If usury is established, the court shall give judgment for the amount due, without interest, on the sum loaned or the debt contracted, against the defendant and in favor of the plaintiff and against the plaintiff for costs of action, whether the action is contested or not. (AS 45.45.040) If interest greater than that prescribed is received or collected, the person paying it may, by action brought within two years after the payment, recover from the person receiving the payment double the amount of the interest received or collected. (AS 45.45.030)

The debtor is also entitled to payment double the amount of interest received or collected.  AS 45.45.030. The essential elements of usury are: (1) an agreement to lend money or its equivalent or to forbear requiring repayment for a period of time; (2) a borrower's obligation to repay absolutely, not upon some contingency; (3) greater compensation for making the loan or agreeing to forbear than allowed by the applicable state constitution or usury statute; and (4) an intention to violate the usury prohibition.  Fikes v. First Fed. Sav. & Loan Ass’n, 533 P.2d 251 (Alaska 1975).