Made available by Touch N' Go Systems, Inc., and the
Law Offices of James B. Gottstein.

You can also go to The Alaska Legal Resource Center or search the entire website search.

Touch N' Go, the DeskTop In-and-Out Board makes your office run smoother. Visit Touch N' Go's Website to see how.
Title 3 . Commerce, Community, and Economic Development
Chapter 23 . Miscellaneous
Section 315. Refund on prepayment

3 AAC 23.315. Refund on prepayment

(a) A borrower may prepay the outstanding balance due under a premium finance agreement or agreement to extend credit in full at any time before the due date of the final payment, and is entitled to receive a refund credit of interest, computed from the date the prepayment is received by the licensee. A refund must be computed on the total amount of precomputed charges, except that the nonrefundable charge of a maximum of $10 per premium finance agreement or agreement to extend credit must be excluded from the refund computation since interest may not be calculated on that charge.

(b) If a premium finance agreement or agreement to extend credit is terminated because of a borrower's default, the borrower is entitled to receive a refund credit of interest as though a prepayment had occurred. A refund credit allowed by this subsection must be computed from the date of cancellation of the insurance policy for which the premium loan was made.

(c) A refund credit of interest must be computed in accordance with the sum-of-the-digits method, commonly known as the Rule of 78's.

History: Eff. 3/11/98, Register 145

Authority: AS 21.06.090

AS 21.36.122


Note to HTML Version:

The Alaska Administrative Code was automatically converted to HTML from a plain text format. Every effort has been made to ensure its accuracy, but neither Touch N' Go Systems nor the Law Offices of James B. Gottstein can be held responsible for any possible errors. This version of the Alaska Administrative Code is current through June, 2006.

If it is critical that the precise terms of the Alaska Administrative Code be known, it is recommended that more formal sources be consulted. Recent editions of the Alaska Administrative Journal may be obtained from the Alaska Lieutenant Governor's Office on the world wide web. If any errors are found, please e-mail Touch N' Go systems at E-mail. We hope you find this information useful. Copyright 2006. Touch N' Go Systems, Inc. All Rights Reserved.

Last modified 7/05/2006