That is correct. Alaska, like every other state in the union, doesn't allow campaign funds to be used to defend ethics or criminals complaints of the candidate, usually. That's why legal defense funds are established. Under Alaska law, legal defense funds are permissible. And, the restrictions that are placed on them with respect to fund raising are not much different than restrictions that are seen in any other state. In fact, there really isn't any oversight of legal defense funds by any Alaska government agency, other than the fact that donations reaching a certain threshold have to be declared and reported. That's it.
And to be clear, since June, Palin has had at least two separate funds established on her behalf. As to how much is in those funds is anyone's guess. The Palin camp has said, nor are they required by statute to do so.