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Enrolled SB 39
LAWS OF ALASKA
2025
Source Chapter No.
CSSB 39(FIN) _______
AN ACT
Relating to loans in an amount of $25,000 or less; relating to financial institutions; relating to
the Nationwide Multistate Licensing System and Registry; relati ng to pawnbroker licensing
exemptions; relating to deferred deposit advances; relating to computing interest; and
providing for an effective date.
_______________
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
THE ACT FOLLOWS ON PAGE 1
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AN ACT
Relating to loans in an amount of $25,000 or less; relating to financial institutions; relating to 1
the Nationwide Multistate Licensing System and Registry; relati ng to pawnbroker licensing 2
exemptions; relating to deferred deposit advances; relating to computing interest; and 3
providing for an effective date. 4
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* Section 1. AS 06.01.020(a) is amended to read: 6
(a) Notwithstanding other provisions of this title, the department may by order 7
authorize state financial institutions, except licensees subjec t to AS 06.20 or [ , ] 8
AS 06.40 [, OR AS 06.50], to exercise any of the powers conferr ed on [UPON], or to 9
be subject to any of the limitations imposed on [UPON], a federally chartered 10
financial institution doing business in this state with deposit s insured by an agency of 11
the federal government if the de partment finds that the exercis e of the power or 12
imposition of the limitation both 13
(1) serves the public convenience and advantage; and 14
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(2) equalizes and maintains the quality of competition between state 1
financial institutions and federally chartered financial institutions. 2
* Sec. 2. AS 06.01.050(3) is amended to read: 3
(3) "financial institution" means an institution subject to th e regulation 4
of the department under this title; in this paragraph, "institu tion" includes a 5
commercial bank, savings bank, mutual savings bank, credit union, premium finance 6
company, small loan company, ba nk holding company, financial ho lding company, 7
trust company, savings and loan association, [DEFERRED DEPOSIT ADVANCE 8
LICENSEE UNDER AS 06.50,] and a licensee under AS 06.60; 9
* Sec. 3. AS 06.20.010(b) is amended to read: 10
(b) A person who is doing business under and as permitted by a ny law of the 11
state or of the United States relating to banks, savings banks, mutual savings banks, 12
trust companies, building and loan associations, or credit unio ns and who is exempt 13
from the licensing requirement in (a) of this section shall com ply with all other 14
provisions of this chapter. 15
* Sec. 4. AS 06.20.010 is amended by adding new subsections to read: 16
(c) A person, including the agen t or service provider of anoth er person, is a 17
lender subject to the requirements of this chapter if the inter est rate on a loan exceeds 18
the maximum interest rate permitted under AS 06.20.230 and 19
(1) the person directly or indi rectly holds, acquires, or main tains the 20
predominant economic interest in a loan in the amount of $25,000 or less; 21
(2) the person offers, markets, brokers, arranges, facilitates , or services 22
a loan in the amount of $25,000 or less and holds the right, re quirement, or first right 23
of refusal to purchase the loan, a receivable in the loan, or interest in the loan; 24
(3) the person makes a loan dis guised as a personal property s ale or 25
leaseback transaction; or 26
(4) the totality of the circums tances indicate that the person is a lender 27
in a loan in the amount of $25,000 or less and the transaction is structured to evade the 28
requirements of this chapter. 29
(d) For the purposes of this chapter, a loan or transaction ta kes place in the 30
state if the borrower is a resident of the state and the borrow er completes the 31
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transaction, either in person or electronically, while physically present in the state. 1
* Sec. 5. AS 06.20 is amended by adding a new section to read: 2
Sec. 06.20.025. National registry. The department may 3
(1) participate in the registry and pay any fees required for 4
participation in the registry; 5
(2) establish by regulation a process for licensees under this chapter to 6
challenge information entered into the registry by the department; 7
(3) contract with entities designated by the registry to colle ct and 8
maintain records or process fees; 9
(4) adopt regulations to require a licensee to register with t he registry 10
and submit applications, renewa l applications, surety bonds, re ports, and other 11
information and forms to the registry; 12
(5) adopt other regulations under AS 44.62 (Administrative Pro cedure 13
Act) to implement this section; 14
(6) request other information th e department reasonably requir es from 15
an applicant. 16
* Sec. 6. AS 06.20.030(a) is amended to read: 17
(a) Investigation expenses incur red by the department in proce ssing an 18
application for licensure shall be charged to and paid by the a pplicant under 19
AS 06.01.010. At the time of submitting the application to the commissioner, the 20
applicant shall pay to the department o r t h r o u g h t h e r e g i s t r y $1,000 in partial 21
payment of those investigation expenses incurred by the department. 22
* Sec. 7. AS 06.20.030(b) is amended to read: 23
(b) An applicant shall pay to the department or through the registry at the 24
time of submitting an application a sum, in addition to that sp ecified in (a) of this 25
section, of $500 for each location of a branch, Internet website, or mobile 26
application [A SINGLE OFFICE LICENSE,] or $2,000 for a company [MULTIPLE 27
OFFICE] license as an annual license fee for a period terminati ng on the last day of 28
the current calendar year. 29
* Sec. 8. AS 06.20.090 is repealed and reenacted to read: 30
Sec. 06.20.090. Places of business. (a) To apply for a license under this 31
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chapter, an applicant or person must submit a separate application to the department or 1
through the registry for each location, including a branch, Int ernet website, or mobile 2
application, through which the applicant or person conducts business. 3
(b) The department may establish by regulation information tha t must be 4
submitted by an applicant and licensee, the procedures for dete rmining acceptable 5
criteria for approvals and denials, the procedures for paying t h e f e e s in th e r e g is try , 6
and the effective period of a license. 7
* Sec. 9. AS 06.20.170 is amended to read: 8
Sec. 06.20.170. Periodic examination. The department shall examine the 9
affairs, business, office, and records of each licensee as often as necessary to carry 10
out the purposes of this chapter [AT LEAST ONCE EVERY 18 MONTHS]. 11
Examination fees are to be charg ed to and paid by the licensee in accordance with 12
AS 06.01.010. The department may maintain an action for the rec overy of the costs in 13
any court of competent jurisdi ction, with recourse to the bonds referred to in 14
AS 06.20.050 and 06.20.080. 15
* Sec. 10. AS 06.20.230 is amended to read: 16
Sec. 06.20.230. Maximum interest permitted. (a) A licensee may lend any 17
sum of money not exceeding $25,000 and may charge, contract for , and receive on the 18
loan interest at a rate not exceeding three percent a month [ON THAT PART OF THE 19
UNPAID PRINCIPAL BALANCE OF A LOAN NOT IN EXCESS OF $850; TWO 20
PERCENT A MONTH ON THE UNPAID PRINCIPAL BALANCE EXCEEDING 21
$850 BUT NOT EXCEEDING $10,000; AND AT A RATE AGREED BY 22
CONTRACT ON THE REMAINDER OF ANY UNPAID PRINCIPAL BALANCE 23
EXCEEDING $10,000 BUT NOT EXCEEDING $25,000]. 24
(b) Notwithstanding the provisions of (a) of this section, a licensee who makes 25
open-end loans under this chapter may charge, contract for, and receive interest at a 26
rate not exceeding three percent a month on that part of the unpaid principal balance of 27
a loan not in excess of [$850; TWO PERCENT A MONTH ON THE UNPAI D 28
PRINCIPAL BALANCE EXCEEDING $850 BUT NOT EXCEEDING $10,000; 29
AND AT A RATE AGREED BY CONTRACT ON THE REMAINDER OF ANY 30
UNPAID PRINCIPAL BALANCE EXCEEDING $10,000 BUT NOT EXCEEDING] 31
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$25,000. 1
(c) Interest on loans under (b) of this section shall be compu ted according to 2
the actuarial method on the entir e unpaid principal balance as determined under 3
AS 06.20.285(b). The interest rate on loans under (a) or (b) of this section sha ll be 4
computed by including all fees, costs, and premiums charged und er 5
AS 06.20.260(a)(1) and (3) - (5). 6
* Sec. 11. AS 06.20.310 is amended to read: 7
Sec. 06.20.310. Effect of illegal interest rate. A loan of the amount or value 8
of $25,000 or less for which a grea ter rate of interest, consid eration, or charge than is 9
permitted by this chapter has been charged, contracted for, or received, wherever 10
made, may not be enforced in the state, and every person partic ipating in such a loan 11
in the state is subject to this chapter. This section does not apply to loans legally made 12
in a state or territory of the United States that has in effect a regulatory small loan law 13
similar in principle to this chapter but does apply to loans made by a person subject 14
to this chapter under AS 06.20.010(c). 15
* Sec. 12. AS 06.20 is amended by adding a new section to read: 16
Sec. 06.20.325. Criminal threats. A licensee under this chapter may not 17
threaten a borrower with criminal prosecution as a result of the borrower's default. 18
* Sec. 13. AS 06.20.330(b) is amended to read: 19
(b) This chapter does not apply to [INDIVIDUAL LOANS BY] 20
(1) pawnbroker transactions by a pawnbroker licensed under 21
AS 08.76 [PAWNBROKERS WHERE SEPARATE AND INDIVIDUAL LOANS 22
DO NOT EXCEED $750; IN THIS PARAGRAPH, "PAWNBROKER" MEANS A 23
PERSON WHO IS REGULATED UNDER AS 08.76.100 - 08.76.590]; or 24
(2) a financial institut ion chartered under 12 U.S.C. 38 (National 25
Bank Act) or 12 U.S.C. 1751 - 1795k (Federal Credit Union Act) [LOAN SHOPS 26
WHERE SEPARATE AND INDIVIDUAL LOANS DO NOT EXCEED $500]. 27
* Sec. 14. AS 06.20.900 is amended by adding a new paragraph to read: 28
(4) "registry" means the Nationwide Multistate Licensing Syste m and 29
Registry. 30
* Sec. 15. AS 08.76.500 is amended to read: 31
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Sec. 08.76.500. Exemptions. This chapter does not apply to 1
(1) a financial institution that is subject to the regulation of the 2
department under AS 06, including a commercial bank, savings bank, mutual savings 3
bank, credit union, premium finance company, small loan company, ban k holding 4
company, financial holding company, trust company, or savings and loan association 5
[, AND DEFERRED DEPOSIT ADVANCE LICENSEE UNDER AS 06.50]; or 6
(2) a financial institution organized under federal law. 7
* Sec. 16. AS 45.45.020 is amended by adding a new subsection to read: 8
(b) Interest under AS 45.45.010 - 45.45.070 shall be computed by including 9
all service charges paid by the borrower, debtor, or mortgagor. In this subsection, 10
"service charge" means a fee charged by the lender, creditor, o r mortgagee for 11
opening, renewing, or continuing an account but does not include a late payment fee, a 12
fee for a dishonored check, reasonable attorney fees or other a ctual expenses and costs 13
incurred in connection with the c ollection of a delinquent debt or a foreclosure, or 14
actual expenses and costs incurred in connection with a repossession. 15
* Sec. 17. AS 06.01.035(j); AS 06.20.030(c); AS 06.50.010, 06.50.020, 06.5 0.030, 16
06.50.040, 06.50.050, 06.50.060, 06.50.070, 06.50.080, 06.50.09 0, 06.50.200, 06.50.210, 17
06.50.220, 06.50.230, 06.50.300, 06.50.310, 06.50.320, 06.50.33 0, 06.50.400, 06.50.410, 18
06.50.420, 06.50.430, 06.50.440, 06.50.450, 06.50.460, 06.50.47 0, 06.50.480, 06.50.490, 19
06.50.500, 06.50.510, 06.50.520, 06.50.530, 06.50.540, 06.50.55 0, 06.50.560, 06.50.600, 20
06.50.610, 06.50.900; AS 44.62.330(a)(40); and AS 47.24.900(10)(K) are repealed. 21
* Sec. 18. This Act takes effect July 1, 2025. 22