Alaska Promissory Note Template [PDF + Download]

A promissory note in Alaska is a legally binding document that formalizes the borrower's promise to repay a lender a specific sum of money, either with or without interest, by an agreed-upon date or upon request. It can be a standalone document containing only the borrower's statement or incorporated into a broader loan agreement in Alaska.

The meaning of a promissory note lies in its purpose—to establish clear, enforceable terms that explicitly define repayment obligations. Since creating a promissory note does not require a lawyer, we have provided a reliable Contracts.net promissory note template to ensure accuracy and compliance with Alaska state laws.

Types of Promissory Notes in Alaska

The types of promissory notes in Alaska differ based on the level of security they offer to the lender. Here are the two primary types:

Unsecured Promissory Note

An unsecured promissory note is a written statement from the borrower detailing the loan amount and other agreed-upon terms. This type does not include collateral, meaning the lender relies solely on the borrower's promise to repay. If the borrower fails to repay, the lender must resort to legal action, as no assets can be claimed.

Secured Promissory Note

A secured promissory note, in addition to the borrower's written commitment to repay the loan, includes collateral—an asset from the borrower that the lender can claim if the borrower defaults on repayment.

While the lender may still need to go through a legal process to claim the collateral, this type of promissory note offers a greater chance of repayment due to the security provided by the collateral.

Signing Requirements for Promissory Notes in Alaska

The signing requirements for promissory notes in Alaska ensure the document is valid and enforceable. With that in mind, let's break down the promissory note Alaska requirements:

Signing Requirements

The note must be in writing.
It must clearly identify the parties involved (lender and borrower).
It needs to specify key details of the Alaska debt agreement, including loan amount, interest rate (if applicable), payment methods, and due date.
The parties must sign the promissory note.

While witnesses and notarization are optional, they strengthen the document’s enforceability. Following these steps ensures you create an enforceable promissory note in Alaska, providing legal security for both personal and business transactions.

Additionally, reviewing a promissory note sample is recommended to ensure it contains all the necessary elements for legal recognition.

Statutory Considerations for Alaska Promissory Notes

According to Section 45.45.010 of the Alaska Code, the annual interest rate for overdue payments is capped at 10.5% unless the parties agree otherwise. However, the agreed rate cannot exceed five percentage points above the Federal Reserve’s rate for member banks, except for loans over $25,000, which are exempt from this limit.

The promissory note in Alaska is suitable for both personal and business loans, offering a straightforward way to formalize repayment terms. Additionally, Alaska’s usury laws prohibit excessive interest rates. Violations result in failure of all interest, leaving only the principal recoverable.

How to Enforce a Promissory Note in Alaska

To enforce a promissory note in Alaska, if a borrower defaults on it, you should follow these steps:

Promissory Note Enforcement

Review the promissory note. Confirm the terms, payment schedule, and any outlined remedies for default.
Send a demand letter. Request repayment in writing, giving the borrower a specific deadline to respond.
File a claim in court. If the borrower doesn’t comply, you may file a lawsuit. For amounts within the $10,000 limit, you can use Alaska’s small claims court. Larger amounts require filing in a higher court.
Seek legal assistance. If the case is complex, consider hiring an attorney for guidance.
Enforce the judgment. If the court rules in your favor, you may garnish wages or seize assets to recover the owed amount.

How Can a Promissory Note in Alaska Be Changed or Revoked?

A promissory note in Alaska can be modified or revoked as long as both parties come to an agreement. Any changes to the previous Alaska debt agreement must be discussed and documented in writing, whether they are an amendment or a revocation of terms.

The updated repayment agreement in Alaska should clearly outline the modifications and the cancellation terms, and both parties must sign it for the changes to take effect, replacing the original agreement with a legally enforceable one.

Before signing, each party should carefully review the updated note, especially the debtor, to ensure all terms are correct. Additionally, both parties should retain an original copy of the updated promissory note as evidence in case of future disputes.