Title 06, Banks and Financial Institutions

Article 5. General Provisions. (a) Except as authorized in this chapter, a person may not directly or indirectly charge, contract for, or receive any interest, discount, or consideration greater than that which the person would be permitted by law to charge if the person were not…

A loan of the amount or value of $25,000 or less for which a greater rate of interest, consideration, or charge than is permitted by this chapter has been charged, contracted for, or received, wherever made, may not be enforced in the state, and every person participating in such…

(a) A licensee or lender who, in the making or collection of a loan contract, does any act that violates AS 06.20.230 — 06.20.260 or 06.20.280 — 06.20.310 shall at the option of the commissioner reimburse the portion of the interest and charges in excess of that provided in those…

(a) [Repealed, § 55 ch 75 SLA 2002.] (b) This chapter does not apply to individual loans by (1) pawnbrokers where separate and individual loans do not exceed $750; in this paragraph, “pawnbroker” means a person who is regulated under AS 08.76.100 — 08.76.590; or (2) loan shops wh…

(a) The department may adopt general regulations and make specific rulings, demands, and findings consistent with this chapter as may be necessary for the proper conduct of business and the enforcement of this chapter. (b) All notices required or authorized by this chapter to be …

This chapter may be modified, amended, or repealed so as to effect a cancellation or alteration of a license or right of a licensee hereunder, but the cancellation or alteration may not impair or affect the obligation of a pre-existing lawful contract between a licensee and a bor…

[Repealed or reserved.]

In this chapter, unless the context otherwise requires, (1) “commissioner” means the commissioner of commerce, community, and economic development or a designee of the commissioner; (2) “department” means the Department of Commerce, Community, and Economic Development; (3) “open-…

This chapter may be cited as the Alaska Small Loans Act.

(a) Notwithstanding other provisions of law and except as provided in AS 06.26.020, a person may not act as a fiduciary in this state unless the person is (1) a trust company organized under this chapter; (2) a private trust company that has received an exemption under AS 06.26.2…

(a) Notwithstanding any other provision of this chapter, a person does not act as a fiduciary under this chapter if the person (1) is licensed to practice law in this state, the person is acting within the scope of the license, and the person and any law firm of the person are no…

Article 2. Name, Powers, Organization, and Capitalization. (a) A trust company may act as a fiduciary in this state, another state, or a foreign country, subject to complying with applicable laws of the state or foreign country, at an office or branch established and maintained u…

(a) A person may not use the words “trust” or “trust company” or any other words in a manner that could reasonably be expected to convey the impression that the person is acting as a fiduciary unless the person is authorized to act as a fiduciary under AS 06.26.010. (b) This sect…

(a) A trust company may perform any act as a fiduciary that a state financial institution, or a national bank exclusively exercising trust powers, may perform, including (1) acting as trustee under a written agreement; (2) receiving money and other property as trustee for investm…

One or more persons may organize a trust company.

(a) A trust company shall be incorporated under AS 10.06. (b) In addition to the items required under AS 10.06.208 to be included in articles of incorporation, the articles of incorporation of a trust company must specify (1) the judicial district where the trust company will be …

(a) A trust company may amend its articles of incorporation or bylaws in a manner consistent with its articles, its bylaws, AS 10.06, and this chapter by a vote of its shareholders representing at least a majority of the capital at a regular meeting or at a special meeting called…

A person may not act as a trust company until a certificate of authority is received from the department.

(a) An application for a certificate of authority shall be made in the form required by the department and must be supported by the information, data, records, and opinions of counsel required by the department. The application must be accompanied by all fees and deposits require…

(a) The department shall notify the organizers of a proposed trust company when the application under AS 06.26.090 is complete and accepted for filing and all required fees and deposits have been paid. Promptly after notification, the organizers shall publish in a form specified …

(a) The department may not deliver a certificate of authority to a person to act as a trust company until the person has (1) received cash or marketable securities in at least the full amount of the capital required under AS 06.26.120 from subscriptions for the issuance of shares…

(a) A trust company may not act as a fiduciary unless the trust company has paid-in capital in an amount acceptable to the department, but not less than $400,000, and paid-in surplus equal to 20 percent of paid-in capital. The trust company shall hold its unimpaired capital as se…

(a) A trust company may, with the written consent of the department, and if authorized by its articles of incorporation or approved by persons owning two-thirds of the stock of the trust company entitled to vote, issue convertible or nonconvertible capital notes or debentures. Th…

Article 3. Operation of Offices. Shareholders may not use cumulative voting in the election of directors unless cumulative voting is allowed by the trust company's articles of incorporation.

(a) A trust company shall continuously maintain in this state a home office where the trust company operates and keeps its records. At least one executive officer shall maintain an office at the home office. (b) Each executive officer at the home office is an agent of the trust c…

(a) A trust company may establish branch offices anywhere in the state by (1) filing a written notice with the department setting out the name of the trust company, the street address of the proposed branch office, and a description of the activities proposed to be conducted at t…

(a) A trust company may establish or acquire representative trust offices anywhere in this state. To establish or acquire a representative office, a trust company shall (1) file a written notice with the department that sets out the name of the trust company and the location of t…

(a) With the prior written approval of the department, a trust company may establish a branch office or a representative office outside this state. To establish a branch office or representative office outside this state, a trust company shall (1) submit an application to the dep…

Article 4. Private Trust Companies. (a) A trust company and an interstate state trust company or an international trust company maintaining a trust office under AS 06.26.810 — 06.26.895 may close on the legal holidays described in AS 44.12.010 — 44.12.025. A notice of holiday clo…

(a) Unless the department expressly in writing exempts the person under this section from all or some of the provisions of this chapter, a private trust company shall comply with the provisions of this chapter applicable to a trust company. (b) A person may apply in writing for a…

(a) To obtain an exemption under AS 06.26.200, a person shall file an application with the department containing (1) a nonrefundable application fee established by the department by regulation; (2) information that demonstrates that the person qualifies under AS 06.26.200(c); (3)…

Control of an exempt private trust company may not be sold or otherwise transferred with an exemption under AS 06.26.200. In any change of control, the exempt status of the private trust company automatically terminates on the effective date of the transfer, and the person acquir…

(a) The department may revoke an exemption under AS 06.26.200 if the exempt private trust company (1) makes a false statement under oath on any document required to be filed by this chapter; (2) fails to submit to an examination as required by AS 06.26.200; (3) withholds requeste…

(a) A private trust company may not offer fiduciary services to the general public as a trust company until the private trust company satisfies the requirements of this section. (b) The private trust company shall file a notice with the department on a form prescribed by the depa…

Article 5. Investments, Loans, and Deposits. The provisions of AS 06.26.200 — 06.26.240 may not be interpreted to prevent a trust company from providing fiduciary services as a private trust company.

The department may adopt regulations to establish limits, requirements, or exemptions for particular classes or categories of investment, or limit or expand investment authority for trust companies for particular classes or categories of securities or other property.

Article 6. Trust Assets. (a) A trust company may not pledge or create a lien on any of the assets belonging to the trust company except to secure (1) the repayment of money borrowed; (2) trust deposits as specifically authorized or required by AS 06.26.370 or by regulations adopt…

(a) A trust company may deposit trust money or other trust assets with itself as an investment if the settlor or the beneficiary authorizes the deposit and if (1) the trust company maintains as security for the deposits a separate fund of securities that may be used for trust inv…

Subject to regulations adopted by the department, a trust company may invest trust assets in common investment funds.

(a) A trust company shall deal at arm's length with a person when arranging the compensation to be paid by the person for the services of the trust company. Any compensation paid to the trust company must be a reasonable amount with respect to the services rendered. (b) When inve…

Before accepting appointment as a trustee, a trust company shall disclose any conflict of interest that may reasonably be expected to arise in the relationship.

Article 7. Ownership. A trust company, its representatives, and its appointees shall observe the requirements applicable to trustees under AS 13.36.225 — 13.36.290 (Alaska Uniform Prudent Investor Act).

(a) Except as expressly otherwise permitted under this chapter, a person may not, without the prior written approval of the department, directly or indirectly acquire control of a trust company through a change in a legal or beneficial interest in voting securities of a trust com…

(a) A proposed transferee seeking approval under AS 06.26.450 to acquire control of a trust company shall file with the department (1) an application in the form prescribed by the department; (2) the filing fee established by the department by regulation; and (3) all information …

(a) The department shall approve or deny an application for acquisition of control not later than the 60th day after the date that the notice regarding acquisition of control is published under AS 06.26.460. (b) If the department approves an application filed under AS 06.26.460, …

Article 8. Governance. AS 06.26.450 — 06.26.480 may not be construed to prevent the department from investigating, commenting on, or seeking to enjoin or set aside a transfer of voting securities that evidence a direct or indirect interest in a trust company if the department con…