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HB 419: "An Act relating to security required when an injunction is issued; amending Rule 65, Alaska Rules of Civil Procedure; and providing for an effective date."

00HOUSE BILL NO. 419 01 "An Act relating to security required when an injunction is issued; amending 02 Rule 65, Alaska Rules of Civil Procedure; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 09.40.230 is amended to read: 05  Sec. 09.40.230. Authorization for injunction. When it appears that (1) the 06 plaintiff is entitled to the relief demanded, and the relief or any part of it includes 07 restraining the commission or continuance of some act, the commission or continuance 08 of which during the litigation would produce injury to the plaintiff; or (2) the 09 defendant is doing, or threatens or is about to do, or is procuring or suffering to be 10 done some act in violation of the plaintiff's rights concerning the subject of the action 11 and tending to render the judgment ineffectual; or (3) the defendant threatens or is 12 about to remove or dispose of property or a part of it with intent to delay or defraud 13 creditors, an injunction may be allowed to restrain such act, removal, or disposition. 14 An injunction may not be issued to restrain the state, a subdivision of the state,

01 or a business unless the applicant provides a bond equal to the economic costs 02 that may be incurred by the state, subdivision of the state, or business if the court 03 determines the state, subdivision, or business was wrongfully restrained by the 04 injunction. The requirement of a bond does not apply to an injunction requested 05 by the state, a subdivision of the state, or in a domestic relations action except 06 as otherwise ordered by the court. In this section, "business" has the meaning 07 given in AS 43.70.110. 08 * Sec. 2. AS 09.40.230, as amended by sec. 2 of this Act, has the effect of amending Rule 09 65, Alaska Rules of Civil Procedure, by requiring that a bond be provided before an injunction 10 may be issued in certain civil actions. 11 * Sec. 3. This Act applies to a civil action that accrues on or after the effective date of this 12 Act. 13 * Sec. 4. Section 1 of this Act takes effect only if sec. 2 receives the two-thirds majority 14 vote of each house required by art. IV, sec. 15, Constitution of the State of Alaska. 15 * Sec. 5. This Act takes effect July 1, 1997.