00                            HOUSE BILL NO. 453                                                                          
01 "An Act relating to default under a deed of trust, to deed of trust foreclosures, and to                                
02 home ownership and protection of equity."                                                                               
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 34.20.070(b) is amended to read:                                                                  
05            (b)  Not less than 60 [30] days or the time allowed by the deed of trust,                            
06       whichever is longer, after the default and not less than three months before the sale,                    
07       the trustee shall record in the office of the recorder of the recording district in which                         
08       the trust property is located a notice of default setting out (1) the name of the trustor,                        
09       (2) the book and page where the trust deed is recorded, (3) a description of the trust                            
10       property, including the property's street address if there is a street address for the                            
11       property, (4) a statement that a breach of the obligation for which the deed of trust is                          
12       security has occurred, (5) the nature of the breach, (6) the sum owing on the                                     
13       obligation, (7) the election by the trustee to sell the property to satisfy the obligation,                       
14       and (8) the date, time, and place of the sale.  An inaccuracy in the street address may                           

01       not be used to set aside a sale if the legal description is correct.  At any time before the                      
02       sale, if the default has arisen by failure to make payments required by the trust deed,                           
03       the default may be cured by payment of the sum in default other than the principal                                
04       which would not then be due if no default had occurred, plus attorney fees or court                               
05       costs actually incurred by the trustee due to the default.  If under the same trust deed                          
06       notice of default under this subsection has been recorded two or more times previously                            
07       and the default has been cured under this subsection, the trustee may elect to refuse                             
08       payment and continue the sale.                                                                                    
09    * Sec. 2.  AS 34.20.070 is amended by adding a new subsection to read:                                             
10            (e)  A default that is based on a failure to make a payment does not qualify as a                            
11       default for which foreclosure may be made under this section unless the trustor is 90                             
12       or more days late in making the payment on which the default is based.  Except as                                 
13       otherwise provided in this subsection, the deed of trust holder shall accept any partial                          
14       payment tendered by the trustor before this 90-day period has expired, apply the                                  
15       partial payment to the late payment upon which the 90 days have been calculated, and,                             
16       if the partial payment fully covers that late payment, recalculate the 90 days from the                           
17       date any subsequent payment that is not fully covered by the partial payment became                               
18       due.  If, under this subsection, successive recalculations are required, the maximum                              
19       period for which successive recalculations may prevent a default from becoming a                                  
20       foreclosable default is 180 days from the due date of the payment for which the first                             
21       recalculation is made.  If a 90-day period provided by a consecutive recalculation                                
22       period would extend beyond the 180-day limitation, the 90-day period is reduced by                                
23       the number of days that would exceed the 180-day limitation.  The deed of trust holder                            
24       is not required to recalculate the 90-day period under this subsection more than six                              
25       consecutive times for the same deed of trust.  In this subsection,                                                
26                 (1)  "consecutive recalculation period" means a recalculation period                                    
27       that is not interrupted by the trustor's becoming current in the trustor's payments;                              
28                 (2)  "foreclosable default" means a default for which foreclosure may                                   
29       be made under (b) of this section.                                                                                
30    * Sec. 3.  The uncodified law of the State of Alaska is amended by adding a new section to                         
31 read:                                                                                                                   

01       APPLICABILITY.  (a)  This Act applies to deeds of trust that are entered into before,                             
02 on, or after the effective date of this Act.                                                                            
03       (b)  This Act applies to deed of trust foreclosures for which a notice of default has not                         
04 been filed before the effective date of this Act.