HB 148: "An Act establishing a moratorium on the foreclosure of certain loans; making the moratorium retroactive; requiring the reversal of certain foreclosures and the return of certain property interests; and providing for an effective date."
00 HOUSE BILL NO. 148 01 "An Act establishing a moratorium on the foreclosure of certain loans; making the 02 moratorium retroactive; requiring the reversal of certain foreclosures and the return of 03 certain property interests; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 FORECLOSURE MORATORIUM. (a) Notwithstanding AS 16.10.335 or any other 08 law to the contrary, the Department of Community and Economic Development may not 09 foreclose on a loan made under AS 16.10.300 - 16.10.370 before January 1, 2001, if the 10 debtor 11 (1) can demonstrate that the debtor is not able to make the payments on the 12 loan because the debtor was adversely affected economically by a poor fishing season in 2000 13 or 2001; and 14 (2) requests that the department not foreclose.
01 (b) Notwithstanding any law to the contrary, and at the request of the borrower, the 02 Alaska Housing Finance Corporation established under AS 18.56.020 may not foreclose on a 03 loan made by the corporation before January 1, 2001, if the borrower is a person who fishes 04 commercially or who owns a business and if the borrower 05 (1) can demonstrate that the borrower is not able to make the payments on the 06 loan because the borrower's commercial fishing or other business has been adversely affected 07 economically by a poor fishing season in 2000 or 2001; and 08 (2) requests that the corporation not foreclose. 09 (c) Notwithstanding AS 44.81.241 - 44.81.250 or any other law to the contrary, the 10 Alaska Commercial Fishing and Agriculture Bank established under AS 44.81.010 may not 11 foreclose on a loan made by the bank before January 1, 2001, if the borrower is a person who 12 fishes commercially or owns a business and if the borrower 13 (1) can demonstrate that the borrower is not able to make the payments on the 14 loan because the borrower's commercial fishing or other business was adversely affected 15 economically by a poor fishing season in 2000 or 2001; and 16 (2) requests that the bank not foreclose. 17 (d) Although foreclosure is limited by (a) - (c) of this section, a loan on which 18 foreclosure is prohibited by (a) - (c) of this section continues to accrue interest under the loan 19 contract, but the lender on the loan may not impose a penalty for nonpayment. 20 (e) In this section, 21 (1) "debtor" has the meaning given in AS 16.10.360; 22 (2) "foreclose" includes any action to collect all or part of the amount owing 23 under the loan without the consent of the borrower or debtor; 24 (3) "loan" includes a loan that is in the process of being foreclosed when this 25 section takes effect; 26 (4) "poor fishing season" means a fishing season 27 (A) that results in a fishing area being declared a disaster by the 28 president of the United States or being declared by the governor under AS 44.33.285 29 to be an area impacted by an economic disaster; or 30 (B) where the number of fish returning to the area was poor, even if 31 the fishing area was not declared to be a disaster under (A) of this paragraph.
01 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 RETROACTIVITY. Section 1 of this Act is retroactive to January 1, 2001. If a 04 lender under sec. 1 of this Act has completed a foreclosure covered by sec. 1 of this Act, the 05 lender shall reverse the foreclosure and return to the borrower whose loan was foreclosed the 06 interest that the borrower had before the foreclosure in the property securing the loan. In this 07 section, 08 (1) "borrower" includes a debtor under sec. 1(a) of this Act; 09 (2) "lender" means 10 (A) the Department of Community and Economic Development, as to 11 a loan made under AS 1610.300 - 16.10.370 described in sec. 1(a) of this Act; 12 (B) the Alaska Housing Finance Corporation, as to a loan made by the 13 corporation described in sec. 1(b) of this Act; and 14 (C) the Alaska Commercial Fishing and Agriculture Bank, as to a loan 15 made by the bank described in sec. 1(c) of this Act. 16 * Sec. 3. Sections 1 and 2 of this Act are repealed July 1, 2002. 17 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).