3 AAC 07.320 - Maximum interest permitted
(a) A premium
finance company may not charge, contract for, receive, or collect a service
charge other than as permitted in AS 06.40.
(b) Repealed 11/14/80.
(c) If the service charge is to be computed
monthly, the licensee may only charge up to 1.25 percent interest on the unpaid
principal balance. The unpaid principal balance must not include the unpaid
interest balance or any other unpaid charges.
(d) The service charge must not exceed a
simple interest equivalent annual rate of 15 percent plus an additional charge
of no more than $10 per premium finance agreement.
(e) If an additional charge of a maximum of
$10 per premium finance agreement is charged as set out in (d) of this section,
the licensee shall clearly disclose the charge to the borrower in the premium
finance agreement.
Notes
Authority:AS 06.40.120
AS 06.40.180
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.