HB 102: "An Act relating to the Uniform Commercial Code, to the general provisions of the Uniform Commercial Code, to documents of title under the Uniform Commercial Code, to the Uniform Electronic Transactions Act, and to lease-purchases of personal property; amending Rules 403 and 902, Alaska Rules of Evidence; and providing for an effective date."
00 HOUSE BILL NO. 102 01 "An Act relating to the Uniform Commercial Code, to the general provisions of the 02 Uniform Commercial Code, to documents of title under the Uniform Commercial Code, 03 to the Uniform Electronic Transactions Act, and to lease-purchases of personal 04 property; amending Rules 403 and 902, Alaska Rules of Evidence; and providing for an 05 effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 09.80.010(b) is amended to read: 08 (b) This chapter does not apply to a transaction to the extent it is governed by 09 (1) a law governing the creation and execution of wills, codicils, or 10 testamentary trusts; 11 (2) the Uniform Commercial Code other than AS 45.01.306, AS 45.02, 12 AS 45.12, and, to the extent allowed by AS 45.07.113(c), AS 45.07 [AS 45.01.107, 13 45.01.206, AS 45.02, AND AS 45.12].
01 * Sec. 2. AS 09.80.130(c) is amended to read: 02 (c) Except as otherwise agreed, a person having control of a transferable 03 record is the holder, as defined in AS 45.01.211(b) [AS 45.01.201], of the transferable 04 record and has the same rights and defenses as a holder of an equivalent record or 05 writing under the Uniform Commercial Code, including, if the applicable statutory 06 requirements under AS 45.03.302(a), AS 45.07.501, or AS 45.29.308 are satisfied, the 07 rights and defenses of a holder in due course, a holder to which a negotiable document 08 of title has been duly negotiated, or a purchaser, respectively. Delivery, possession, 09 and endorsement are not required to obtain or exercise a right [ANY OF THE 10 RIGHTS] under this subsection. 11 * Sec. 3. AS 45.01 is amended by adding new sections to article 1 to read: 12 Sec. 45.01.111. Short titles. (a) AS 45.01 - AS 45.08, AS 45.12, AS 45.14, 13 and AS 45.29 may be cited as the Uniform Commercial Code. 14 (b) This chapter may be cited as the Uniform Commercial Code - General 15 Provisions. 16 Sec. 45.01.112. Scope of chapter. This chapter applies to a transaction to the 17 extent that the transaction is governed by another chapter of the code. 18 Sec. 45.01.113. Construction of code to promote its purposes and policies; 19 applicability of supplemental principles of law. (a) The code shall be liberally 20 construed and applied to promote the code's underlying purposes and policies, which 21 are to 22 (1) simplify, clarify, and modernize the law governing commercial 23 transactions; 24 (2) permit the continued expansion of commercial practices through 25 custom, usage, and agreement of the parties; and 26 (3) make uniform the law among the various jurisdictions. 27 (b) Unless displaced by the particular provisions of the code, the principles of 28 law and equity, including the law merchant and the law relative to capacity to contract, 29 principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, 30 bankruptcy, and other validating or invalidating cause, supplement the code's 31 provisions.
01 Sec. 45.01.114. Construction against implied repeal. The code being a 02 general act intended as a unified coverage of its subject matter, no part of it may be 03 considered to be impliedly repealed by subsequent legislation if that construction can 04 reasonably be avoided. 05 Sec. 45.01.115. Severability. If a provision or clause of the code or application 06 of the clause or provision to a person or circumstances is held invalid, the invalidity 07 does not affect other provisions or applications of the code that can be given effect 08 without the invalid provision or application, and to this end the provisions of the code 09 are severable. 10 Sec. 45.01.116. Use of singular and plural; gender. In the code, the rules of 11 construction in AS 01.10.050(b) and (c) apply, unless the statutory context otherwise 12 requires. 13 Sec. 45.01.117. Section captions. Notwithstanding AS 01.05.006 and 14 01.05.031(b)(2), section captions are part of the code. 15 Sec. 45.01.118. Relation to Electronic Signatures in Global and National 16 Commerce Act. The code modifies, limits, and supersedes 15 U.S.C. 7001 - 7031 17 (Electronic Signatures in Global and National Commerce Act) but does not modify, 18 limit, or supersede 15 U.S.C. 7001(c) or authorize electronic delivery of a notice 19 described in 15 U.S.C. 7003(b). 20 * Sec. 4. AS 45.01 is amended by adding new sections to read: 21 Sec. 45.01.211. General definitions. (a) Unless the context otherwise requires, 22 words or phrases defined in this section, or in the additional definitions contained in 23 other chapters of the code that apply to particular chapters or articles of the code, have 24 the meanings stated. 25 (b) Subject to definitions contained in other chapters of the code that apply to 26 particular chapters or articles of the code, 27 (1) "action," in the sense of a judicial proceeding, includes 28 recoupment, counterclaim, set-off, suit in equity, and another proceeding in which 29 rights are determined; 30 (2) "aggrieved party" means a party entitled to pursue a remedy; 31 (3) "agreement," as distinguished from "contract," means the bargain
01 of the parties in fact, as found in their language or inferred from other circumstances, 02 including course of performance, course of dealing, or usage of trade as provided in 03 AS 45.01.303; 04 (4) "bank" means a person engaged in the business of banking and 05 includes a savings bank, savings and loan association, credit union, and trust company; 06 (5) "bearer" means a person in control of a negotiable electronic 07 document of title or a person in possession of a negotiable instrument, negotiable 08 tangible document of title, or certificated security that is payable to bearer or endorsed 09 in blank; 10 (6) "bill of lading" means a document of title evidencing the receipt of 11 goods for shipment issued by a person engaged in the business of directly or indirectly 12 transporting or forwarding goods; "bill of lading" does not include a warehouse 13 receipt; 14 (7) "branch" includes a separately incorporated foreign branch of a 15 bank; 16 (8) "burden of establishing" a fact means the burden of persuading the 17 trier of fact that the existence of the fact is more probable than its nonexistence; 18 (9) "buyer in ordinary course of business" means a person who buys 19 goods in good faith, without knowledge that the sale violates the rights of another 20 person in the goods, and in the ordinary course from a person, other than a 21 pawnbroker, in the business of selling goods of that kind; a person buys goods in the 22 ordinary course if the sale to the person comports with the usual or customary 23 practices in the kind of business in which the seller is engaged or with the seller's own 24 usual or customary practices; a person who sells oil, gas, or other minerals at the 25 wellhead or minehead is a person in the business of selling goods of that kind; a buyer 26 in ordinary course of business may buy for cash, by exchange of other property, or on 27 secured or unsecured credit, and may acquire goods or documents of title under a 28 preexisting contract for sale; only a buyer who takes possession of the goods or has a 29 right to recover the goods from the seller under AS 45.02 may be a buyer in ordinary 30 course of business; "buyer in ordinary course of business" does not include a person 31 who acquires goods in a transfer in bulk or as security for or in total or partial
01 satisfaction of a money debt; 02 (10) "code" means AS 45.01 - AS 45.08, AS 45.12, AS 45.14, and 03 AS 45.29; 04 (11) "conspicuous," with reference to a term, means written, displayed, 05 or presented in a way that a reasonable person against whom it is to operate ought to 06 have noticed it; whether a term is "conspicuous" or not is a decision for the court; 07 conspicuous terms include 08 (A) a heading in capitals equal to or greater in size than the 09 surrounding text, or in contrasting type, font, or color to the surrounding text of 10 the same or lesser size; and 11 (B) language in the body of a record or display in larger type 12 than the surrounding text, or in contrasting type, font, or color to the 13 surrounding text of the same size, or set off from surrounding text of the same 14 size by symbols or other marks that call attention to the language; 15 (12) "consumer" means an individual who enters into a transaction 16 primarily for personal, family, or household purposes; 17 (13) "contract," as distinguished from "agreement," means the total 18 legal obligation that results from the parties' agreement as determined by the code as 19 supplemented by other applicable laws; 20 (14) "creditor" includes a general creditor, a secured creditor, a lien 21 creditor, and a representative of creditors, including an assignee for the benefit of 22 creditors, a trustee in bankruptcy, a receiver in equity, and an executor or 23 administrator of an insolvent debtor's or assignor's estate; 24 (15) "defendant" includes a person in the position of defendant in a 25 counterclaim, cross-claim, or third-party claim; 26 (16) "delivery," with respect to an electronic document of title, means 27 voluntary transfer of control and, with respect to an instrument, a tangible document of 28 title, or chattel paper, means voluntary transfer of possession; 29 (17) "document of title" 30 (A) means a record that 31 (i) in the regular course of business or financing, is
01 treated as adequately evidencing that the person in possession or 02 control of the record is entitled to receive, control, hold, and dispose of 03 the record and the goods the record covers; and 04 (ii) purports to be issued by or addressed to a bailee and 05 to cover goods in the bailee's possession that are either identified or are 06 fungible portions of an identified mass; 07 (B) includes a bill of lading, transport document, dock warrant, 08 dock receipt, warehouse receipt, and order for delivery of goods; 09 (18) "electronic document of title" means a document of title 10 evidenced by a record consisting of information stored in an electronic medium; 11 (19) "fault" means a default, breach, or wrongful act or omission; 12 (20) "fungible goods" means goods 13 (A) of which a unit, by nature or usage of trade, is the 14 equivalent of another like unit; or 15 (B) that, by agreement, are treated as equivalent; 16 (21) "genuine" means free of forgery or counterfeiting; 17 (22) "good faith," except as otherwise provided in AS 45.05, means 18 honesty in fact and the observance of reasonable commercial standards of fair dealing; 19 (23) "holder" means the person in 20 (A) possession of a negotiable instrument that is payable either 21 to bearer or to an identified person who is the person in possession; 22 (B) possession of a negotiable tangible document of title if the 23 goods are deliverable either to bearer or to the order of the person in 24 possession; or 25 (C) control of a negotiable electronic document of title; 26 (24) "insolvency proceeding" includes an assignment for the benefit of 27 creditors or another proceeding intended to liquidate or rehabilitate the estate of the 28 person involved; 29 (25) "insolvent" means 30 (A) having generally ceased to pay debts in the ordinary course 31 of business other than as a result of bona fide dispute;
01 (B) being unable to pay debts as they become due; or 02 (C) being insolvent within the meaning of federal bankruptcy 03 law; 04 (26) "money" means a medium of exchange currently authorized or 05 adopted by a domestic or foreign government, and includes a monetary unit of account 06 established by an intergovernmental organization or by agreement between two or 07 more countries; 08 (27) "organization" means a person other than an individual; 09 (28) "party," as distinguished from "third party," means a person who 10 has engaged in a transaction or made an agreement subject to the code; 11 (29) "person" means an individual, corporation, business trust, estate, 12 trust, partnership, limited liability company, association, joint venture, government, 13 governmental subdivision, agency, or instrumentality, public corporation, or another 14 legal or commercial entity; 15 (30) "present value" means the amount as of a date certain of one or 16 more sums payable in the future, discounted to the date certain 17 (A) by use of an interest rate that is specified by the parties if 18 that rate is not manifestly unreasonable at the time the transaction is entered 19 into; or 20 (B) if an interest rate is not determined under (A) of this 21 paragraph, by use of a commercially reasonable rate that takes into account the 22 facts and circumstances at the time the transaction is entered into; 23 (31) "purchase" means taking by sale, lease, discount, negotiation, 24 mortgage, pledge, lien, security interest, issue or reissue, gift, or another voluntary 25 transaction creating an interest in property; 26 (32) "purchaser" means a person who takes by purchase; 27 (33) "record" means information that is inscribed on a tangible 28 medium or that is stored in an electronic or other medium and is retrievable in 29 perceivable form; 30 (34) "remedy" means a remedial right to which an aggrieved party is 31 entitled with or without resort to a tribunal;
01 (35) "representative" means a person empowered to act for another, 02 including an agent, an officer of a corporation or association, and a trustee, executor, 03 or administrator of an estate; 04 (36) "right" includes remedy; 05 (37) "security interest" means an interest in personal property or 06 fixtures that secures payment or performance of an obligation; "security interest" 07 includes an interest of a consignor and a buyer of accounts, chattel paper, a payment 08 intangible, or a promissory note in a transaction that is subject to AS 45.29; "security 09 interest" does not include the special property interest of a buyer of goods on 10 identification of those goods to a contract for sale under AS 45.02.401, but a buyer 11 may also acquire a security interest by complying with AS 45.29; except as otherwise 12 provided in AS 45.02.505, the right of a seller or lessor of goods under AS 45.02 or 13 AS 45.12 to retain or acquire possession of the goods is not a security interest, but a 14 seller or lessor may also acquire a security interest by complying with AS 45.29; the 15 retention or reservation of title by a seller of goods notwithstanding shipment or 16 delivery to the buyer under AS 45.02.401 is limited in effect to a reservation of a 17 security interest; whether a transaction in the form of a lease creates a security interest 18 is determined under AS 45.01.213; 19 (38) "send," in connection with a writing, record, or notice, means 20 (A) to deposit in the mail or deliver for transmission by a usual 21 means of communication with postage or cost of transmission provided for and 22 properly addressed and, in the case of an instrument, to an address specified on 23 the instrument or otherwise agreed on, or, if an address is not specified on the 24 instrument or otherwise agreed on, to an address reasonable under the 25 circumstances; or 26 (B) in another way to cause to be received a record or notice 27 within the time it would have arrived if properly sent; 28 (39) "signed" includes using a symbol executed or adopted with 29 present intention to adopt or accept a writing; 30 (40) "state" means a state of the United States, the District of 31 Columbia, Puerto Rico, the United States Virgin Islands, or a territory or insular
01 possession subject to the jurisdiction of the United States; 02 (41) "surety" includes a guarantor or other secondary obligor; 03 (42) "tangible document of title" means a document of title evidenced 04 by a record consisting of information that is inscribed on a tangible medium; 05 (43) "term" means a portion of an agreement that relates to a particular 06 matter; 07 (44) "unauthorized signature" means a signature made without actual, 08 implied, or apparent authority, and includes a forgery; 09 (45) "warehouse receipt" means a document of title issued by a 10 warehouse; in this paragraph, "warehouse" has the meaning given in AS 45.07.112(a); 11 (46) "writing" includes printing, typewriting, or another intentional 12 reduction to tangible form; "written" has a corresponding meaning. 13 Sec. 45.01.212. Notice; knowledge. (a) Subject to (f) of this section, a person 14 has "notice" of a fact if the person 15 (1) has actual knowledge of it; 16 (2) has received a notice or notification of it; or 17 (3) from all the facts and circumstances known to the person at the 18 time in question, has reason to know that it exists. 19 (b) "Knowledge" means actual knowledge. "Knows" has a corresponding 20 meaning. 21 (c) "Discover," "learn," or words of similar import refer to knowledge rather 22 than to reason to know. 23 (d) A person "notifies" or "gives" a notice or notification to another person by 24 taking those steps that may be reasonably required to inform the other person in 25 ordinary course, whether or not the other person actually comes to know of it. 26 (e) Subject to (f) of this section, a person "receives" a notice or notification 27 when it 28 (1) comes to that person's attention; or 29 (2) is duly delivered in a form reasonable under the circumstances at 30 the place of business through which the contract was made or at another location held 31 out by that person as the place for receipt of that type of communication.
01 (f) Notice, knowledge, or a notice or notification received by an organization 02 is effective for a particular transaction from the time it is brought to the attention of 03 the individual conducting that transaction and, in any event, from the time it would 04 have been brought to the individual's attention if the organization had exercised due 05 diligence. An organization exercises due diligence if it maintains reasonable routines 06 for communicating significant information to the person conducting the transaction 07 and there is reasonable compliance with the routines. Due diligence does not require 08 an individual acting for the organization to communicate information unless the 09 communication is part of the individual's regular duties or the individual has reason to 10 know of the transaction and that the transaction would be materially affected by the 11 information. 12 Sec. 45.01.213. Lease distinguished from security interest. (a) Whether a 13 transaction in the form of a lease creates a lease or security interest is determined by 14 the facts of each case. 15 (b) A transaction in the form of a lease creates a security interest if the 16 consideration that the lessee is to pay the lessor for the right to possession and use of 17 the goods is an obligation for the term of the lease and is not subject to termination by 18 the lessee, and the 19 (1) original term of the lease is equal to or greater than the remaining 20 economic life of the goods; 21 (2) lessee is bound to renew the lease for the remaining economic life 22 of the goods or is bound to become the owner of the goods; 23 (3) lessee has an option to renew the lease for the remaining economic 24 life of the goods for no additional consideration or for nominal additional 25 consideration upon compliance with the lease agreement; or 26 (4) lessee has an option to become the owner of the goods for no 27 additional consideration or for nominal additional consideration on compliance with 28 the lease agreement. 29 (c) A transaction in the form of a lease does not create a security interest 30 merely because the 31 (1) present value of the consideration the lessee is obligated to pay the
01 lessor for the right to possession and use of the goods is substantially equal to or 02 greater than the fair market value of the goods at the time the lease is entered into; 03 (2) lessee assumes risk of loss of the goods; 04 (3) lessee agrees to pay, with respect to the goods, taxes, insurance, 05 filing, recording, or registration fees, or service or maintenance costs; 06 (4) lessee has an option to renew the lease or to become the owner of 07 the goods; 08 (5) lessee has an option to renew the lease for a fixed rent that is equal 09 to or greater than the reasonably predictable fair market rent for the use of the goods 10 for the term of the renewal at the time the option is to be performed; or 11 (6) lessee has an option to become the owner of the goods for a fixed 12 price that is equal to or greater than the reasonably predictable fair market value of the 13 goods at the time the option is to be performed. 14 (d) Additional consideration is nominal if it is less than the lessee's reasonably 15 predictable cost of performing under the lease agreement if the option is not exercised. 16 Additional consideration is not nominal if, when the option to 17 (1) renew the lease is granted to the lessee, the rent is stated to be the 18 fair market rent for the use of the goods for the term of the renewal determined at the 19 time the option is to be performed; or 20 (2) become the owner of the goods is granted to the lessee, the price is 21 stated to be the fair market value of the goods determined at the time the option is to 22 be performed. 23 (e) The remaining economic life of the goods and reasonably predictable fair 24 market rent, fair market value, or cost of performing under the lease agreement must 25 be determined with reference to the facts and circumstances at the time the transaction 26 is entered into. 27 Sec. 45.01.214. Value. Except as otherwise provided in AS 45.03, AS 45.04, 28 and AS 45.05, a person gives value for rights if the person acquires them 29 (1) in return for a binding commitment to extend credit or for the 30 extension of immediately available credit, whether or not drawn upon and whether or 31 not a charge-back is provided for in the event of difficulties in collection;
01 (2) as security for, or in total or partial satisfaction of, a preexisting 02 claim; 03 (3) by accepting delivery under a preexisting contract for purchase; or 04 (4) in return for consideration sufficient to support a simple contract. 05 Sec. 45.01.215. Reasonable time; seasonableness. (a) Whether a time for 06 taking an action required by the code is reasonable depends on the nature, purpose, 07 and circumstances of the action. 08 (b) An action is taken seasonably if it is taken at or within the time agreed on 09 or, if no time is agreed on, at or within a reasonable time. 10 Sec. 45.01.216. Presumptions. Whenever the code creates a presumption with 11 respect to a fact, or provides that a fact is presumed, the trier of fact must find the 12 existence of the fact unless and until evidence is introduced that supports a finding of 13 the nonexistence of the fact. 14 Article 3. Territorial Applicability and General Rules. 15 Sec. 45.01.301. Territorial applicability; parties' power to choose 16 applicable law. (a) Except as otherwise provided in this section, when a transaction 17 bears a reasonable relation to this state and also to another state or nation, the parties 18 may agree that the law of this state or of the other state or nation shall govern the 19 parties' rights and duties. 20 (b) In the absence of an agreement effective under (a) of this section, and 21 except as provided in (c) of this section, the code applies to transactions bearing an 22 appropriate relation to this state. 23 (c) If one of the following provisions of the code specifies the applicable law, 24 that provision governs, and a contrary agreement is effective only to the extent 25 permitted by the applicable law specified by that provision: 26 (1) AS 45.02.402; 27 (2) AS 45.04.102; 28 (3) AS 45.05.116; 29 (4) AS 45.08.110; 30 (5) AS 45.12.105 and 45.12.106; 31 (6) AS 45.14.507;
01 (7) AS 45.29.301 - 45.29.307. 02 Sec. 45.01.302. Variation by agreement. (a) Except as otherwise provided in 03 (b) of this section or elsewhere in the code, the effect of provisions of the code may be 04 varied by agreement. 05 (b) The obligations of good faith, diligence, reasonableness, and care 06 prescribed by the code may not be disclaimed by agreement. The parties, by 07 agreement, may determine the standards by which the performance of those 08 obligations is to be measured if those standards are not manifestly unreasonable. 09 Whenever the code requires an action to be taken within a reasonable time, a time that 10 is not manifestly unreasonable may be fixed by agreement. 11 (c) The presence in certain provisions of the code of the phrase "unless 12 otherwise agreed," or words of similar import, does not imply that the effect of other 13 provisions may not be varied by agreement under this section. 14 Sec. 45.01.303. Course of performance, course of dealing, and usage of 15 trade. (a) A "course of performance" is a sequence of conduct between the parties to a 16 particular transaction that exists if the 17 (1) agreement of the parties with respect to the transaction involves 18 repeated occasions for performance by a party; and 19 (2) other party, with knowledge of the nature of the performance and 20 opportunity for objection to it, accepts the performance or acquiesces in it without 21 objection. 22 (b) A "course of dealing" is a sequence of conduct concerning previous 23 transactions between the parties to a particular transaction that is fairly to be regarded 24 as establishing a common basis of understanding for interpreting the parties' 25 expressions and other conduct. 26 (c) A "usage of trade" is a practice or method of dealing having the regularity 27 of observance in a place, vocation, or trade as to justify an expectation that it will be 28 observed with respect to the transaction in question. The existence and scope of a 29 usage of trade must be proved as facts. If it is established that a usage of trade is 30 embodied in a trade code or similar record, the interpretation of the record is a 31 question of law.
01 (d) A course of performance or course of dealing between the parties or usage 02 of trade in the vocation or trade in which they are engaged or of which they are or 03 should be aware is relevant in ascertaining the meaning of the parties' agreement, may 04 give particular meaning to specific terms of the agreement, and may supplement or 05 qualify the terms of the agreement. A usage of trade applicable in the place in which 06 part of the performance under the agreement is to occur may be used as indicated in 07 the previous sentence as to that part of the performance. 08 (e) Except as otherwise provided in (f) of this section, the express terms of an 09 agreement and an applicable course of performance, course of dealing, or usage of 10 trade must be construed whenever reasonable as consistent with each other. If this 11 construction is unreasonable, 12 (1) express terms prevail over course of performance, course of 13 dealing, and usage of trade; 14 (2) course of performance prevails over course of dealing and usage of 15 trade; and 16 (3) course of dealing prevails over usage of trade. 17 (f) Subject to AS 45.02.209, a course of performance is relevant to show a 18 waiver or modification of a term inconsistent with the course of performance. 19 (g) Evidence of a relevant usage of trade offered by one party is not 20 admissible unless that party has given the other party notice that the court finds 21 sufficient to prevent unfair surprise to the other party. 22 Sec. 45.01.304. Obligation of good faith. Every contract or duty within the 23 code imposes an obligation of good faith in its performance and enforcement. 24 Sec. 45.01.305. Remedies to be liberally administered. (a) The remedies 25 provided by the code must be liberally administered to the end that the aggrieved party 26 may be put in as good a position as if the other party had fully performed, but neither 27 consequential or special damages nor penal damages may be had except as specifically 28 provided in the code or by other rule of law. 29 (b) A right or obligation declared by the code is enforceable by action unless 30 the provision declaring it specifies a different and limited effect. 31 Sec. 45.01.306. Waiver or renunciation of claim or right after breach. A
01 claim or right arising out of an alleged breach may be discharged in whole or in part 02 without consideration by agreement of the aggrieved party in an authenticated record. 03 Sec. 45.01.307. Prima facie evidence by third-party documents. A 04 document in due form purporting to be a bill of lading, policy or certificate of 05 insurance, official weigher's or inspector's certificate, consular invoice, or another 06 document authorized or required by the contract to be issued by a third party is prima 07 facie evidence of its own authenticity and genuineness and of the facts stated in the 08 document by the third party. 09 Sec. 45.01.308. Performance or acceptance under reservation of rights. (a) 10 A party who, with explicit reservation of rights, performs or promises performance or 11 assents to performance in a manner demanded or offered by the other party does not 12 by the performance, promise, or assent prejudice the rights reserved. The words, 13 "without prejudice," "under protest," or the like are sufficient. 14 (b) The provisions of (a) of this section do not apply to an accord and 15 satisfaction. 16 Sec. 45.01.309. Option to accelerate at will. A term providing that one party 17 or that party's successor in interest may accelerate payment or performance or require 18 collateral or additional collateral "at will" or when the party "deems itself insecure," or 19 words of similar import, means that the party has power to make the acceleration or 20 requirement only if that party in good faith believes that the prospect of payment or 21 performance is impaired. The burden of establishing lack of good faith is on the party 22 against whom the power has been exercised. 23 Sec. 45.01.310. Subordinated obligations. An obligation may be issued as 24 subordinated to performance of another obligation of the person obligated, or a 25 creditor may subordinate its right to performance of an obligation by agreement with 26 either the person obligated or another creditor of the person obligated. Subordination 27 does not create a security interest as against either the common debtor or a 28 subordinated creditor. 29 * Sec. 5. AS 45.02.103(c)(2) is amended to read: 30 (2) "consignee" (AS 45.07.112) [(AS 45.07.102)]; 31 * Sec. 6. AS 45.02.103(c)(3) is amended to read:
01 (3) "consignor" (AS 45.07.112) [(AS 45.07.102)]; 02 * Sec. 7. AS 45.02.103(c) is amended by adding a new paragraph to read: 03 (7) "control" (AS 45.07.116). 04 * Sec. 8. AS 45.02.104(b) is amended to read: 05 (b) "Financing agency" means a bank, finance company, or other person who 06 in the ordinary course of business makes advances against goods or documents of title 07 or who by arrangement with either the seller or the buyer intervenes in ordinary course 08 to make or collect payment due or claimed under the contract for sale, as by 09 purchasing or paying the seller's draft or making advances against it or by merely 10 taking it for collection whether or not documents of title accompany or are associated 11 with the draft. "Financing agency" includes also a bank or other person who similarly 12 intervenes between persons who are in the position of seller and buyer in respect to the 13 goods (AS 45.02.707). 14 * Sec. 9. AS 45.02.202 is amended to read: 15 Sec. 45.02.202. Final written expression; parol or extrinsic evidence. Terms 16 with respect to which the confirmatory memoranda of the parties agree, or that are 17 otherwise set out in a writing intended by the parties as a final expression of their 18 agreement with respect to the terms included in the writing, may not be contradicted 19 by evidence of a prior agreement or of a contemporaneous oral agreement, but may be 20 explained or supplemented 21 (1) by course of performance, course of dealing, or usage of trade 22 (AS 45.01.303) [(AS 45.01.205) OR BY COURSE OF PERFORMANCE 23 (AS 45.02.208)]; and 24 (2) by evidence of consistent additional terms unless the court finds the 25 writing was intended also as a complete and exclusive statement of the terms of the 26 agreement. 27 * Sec. 10. AS 45.02.310 is amended to read: 28 Sec. 45.02.310. Open time for payment or running of credit; authority to 29 ship under reservation. Unless otherwise agreed, 30 (1) payment is due at the time and place at which the buyer is to 31 receive the goods even though the place of shipment is the place of delivery;
01 (2) if the seller is authorized to send the goods, the seller may ship 02 them under reservation and may tender the documents of title, but the buyer may 03 inspect the goods after their arrival before payment is due unless inspection is 04 inconsistent with the terms of the contract (AS 45.02.513); 05 (3) if delivery is authorized and made by way of documents of title 06 other [OTHERWISE] than by (2) of this section, then payment is due, regardless of 07 where the goods are to be received, at the time 08 (A) and place at which the buyer is to receive delivery of the 09 tangible documents; or 10 (B) the buyer is to receive delivery of the electronic 11 documents and at the seller's place of business or, if the seller does not 12 have a place of business, the seller's residence [REGARDLESS OF WHERE 13 THE GOODS ARE TO BE RECEIVED]; and 14 (4) if the seller is required or authorized to ship the goods on credit, the 15 credit period runs from the time of shipment, but postdating the invoice or delaying its 16 dispatch correspondingly delays the starting of the credit period. 17 * Sec. 11. AS 45.02.323(b) is amended to read: 18 (b) Where, in a case within (a) of this section, a tangible bill of lading has 19 been issued in a set of parts, unless otherwise agreed, if the documents are not to be 20 sent from abroad, the buyer may demand tender of the full set; otherwise only one part 21 of the bill of lading need be tendered. Even if the agreement expressly requires a full 22 set, 23 (1) due tender of a single part is acceptable within the provisions on 24 cure of improper delivery (AS 45.02.508(a)); and 25 (2) even though the full set is demanded, if the documents are sent 26 from abroad, the person tendering an incomplete set may nevertheless require payment 27 upon furnishing an indemnity that the buyer in good faith considers adequate. 28 * Sec. 12. AS 45.02.401 is amended to read: 29 Sec. 45.02.401. Passing of title; reservation for security; limited 30 application of this section. Each provision of this chapter with regard to the rights, 31 obligations, and remedies of the seller, the buyer, purchasers, or other third parties
01 applies irrespective of title to the goods except where the provision refers to the title. 02 Insofar as situations are not covered by the other provisions of this chapter and matters 03 concerning title become material, the following rules apply: 04 (1) title to goods cannot pass under a contract for sale before their 05 identification to the contract (AS 45.02.501), and, unless otherwise explicitly agreed, 06 the buyer acquires by their identification a special property as limited by the code; a 07 retention or reservation by the seller of the title (property) in goods shipped or 08 delivered to the buyer is limited in effect to a reservation of a security interest; subject 09 to these provisions and to the provisions of AS 45.29, title to goods passes from the 10 seller to the buyer in the manner and on the conditions explicitly agreed on by the 11 parties; 12 (2) unless otherwise explicitly agreed, title passes to the buyer at the 13 time and place at which the seller completes performance with reference to the 14 physical delivery of the goods, despite a reservation of a security interest and even 15 though a document of title is to be delivered at a different time or place; in particular 16 and despite a reservation of a security interest by the bill of lading, 17 (A) if the contract requires or authorizes the seller to send the 18 goods to the buyer but does not require the seller to deliver them at destination, 19 title passes to the buyer at the time and place of shipment; but 20 (B) if the contract requires delivery at destination, title passes 21 on tender there; 22 (3) unless otherwise explicitly agreed, where delivery is to be made 23 without moving the goods, 24 (A) if the seller is to deliver a tangible document of title, title 25 passes at the time and place the seller delivers the document, and, if the seller 26 is to deliver an electronic document of title, title passes when the seller 27 delivers the document [DOCUMENTS]; or 28 (B) if the goods are at the time of contracting already identified 29 and no documents of title are to be delivered, title passes at the time and place 30 of contracting; 31 (4) a rejection or other refusal by the buyer to receive or retain the
01 goods, whether or not justified, or a justified revocation of acceptance revests title to 02 the goods in the seller; this revesting occurs by operation of law and is not a "sale." 03 * Sec. 13. AS 45.02.503(d) is amended to read: 04 (d) If goods are in the possession of a bailee and are to be delivered without 05 being moved, 06 (1) tender requires that the seller either tender a negotiable document 07 of title covering the goods or procure acknowledgment by the bailee of the buyer's 08 right to possession of the goods; but 09 (2) tender to the buyer of a nonnegotiable document of title or of a 10 record directing [WRITTEN DIRECTION TO] the bailee to deliver is sufficient 11 tender unless the buyer seasonably objects, and, except as otherwise provided in 12 AS 45.29, receipt by the bailee of notification of the buyer's rights fixes those rights as 13 against the bailee and all third persons; but risk of loss of the goods and of a failure by 14 the bailee to honor the nonnegotiable document of title or to obey the direction 15 remains on the seller until the buyer has had a reasonable time to present the document 16 or direction, and a refusal by the bailee to honor the document or to obey the direction 17 defeats the tender. 18 * Sec. 14. AS 45.02.503(e) is amended to read: 19 (e) If the contract requires the seller to deliver documents, 20 (1) the seller must tender all such documents in correct form except as 21 provided in AS 45.02.323(b) with respect to bills of lading in a set; and 22 (2) tender through customary banking channels is sufficient, and 23 dishonor of a draft accompanying or associated with the documents constitutes 24 nonacceptance or rejection. 25 * Sec. 15. AS 45.02.505 is amended to read: 26 Sec. 45.02.505. Seller's shipment under reservation. (a) If the seller has 27 identified goods to the contract by or before shipment, 28 (1) the seller's procurement of a negotiable bill of lading to the seller's 29 order or otherwise reserves in the seller a security interest in the goods; the seller's 30 procurement of the bill to the order of a financing agency or of the buyer indicates in 31 addition only the seller's expectation of transferring that interest to the person named;
01 (2) a nonnegotiable bill of lading to the seller or the nominee of the 02 seller reserves possession of the goods as security, but, except in a case of conditional 03 delivery (AS 45.02.507(b)), a nonnegotiable bill of lading naming the buyer as 04 consignee reserves no security interest even though the seller retains possession or 05 control of the bill of lading. 06 (b) If shipment by the seller with reservation of a security interest is in 07 violation of the contract for sale, it constitutes an improper contract for transportation 08 within AS 45.02.504 [THE PRECEDING SECTION] but impairs neither the rights 09 given to the buyer by shipment and identification of the goods to the contract nor the 10 seller's powers as a holder of a negotiable document of title. 11 * Sec. 16. AS 45.02.506(b) is amended to read: 12 (b) The right to reimbursement of a financing agency that has in good faith 13 honored or purchased the draft under commitment to or authority from the buyer is not 14 impaired by subsequent discovery of defects with reference to a relevant document 15 that was apparently regular [ON ITS FACE]. 16 * Sec. 17. AS 45.02.509(b) is amended to read: 17 (b) Where the goods are held by a bailee to be delivered without being moved, 18 the risk of loss passes to the buyer 19 (1) on the buyer's receipt of possession or control of a negotiable 20 document of title covering the goods; 21 (2) on acknowledgment by the bailee of the buyer's right to possession 22 of the goods; or 23 (3) after the buyer's receipt of possession or control of a 24 nonnegotiable document of title or other [WRITTEN] direction to deliver in a record, 25 as provided in AS 45.02.503(d)(2). 26 * Sec. 18. AS 45.02.605(b) is amended to read: 27 (b) Payment against documents made without reservation of rights precludes 28 recovery of the payment for defects apparent in [ON THE FACE OF] the documents. 29 * Sec. 19. AS 45.02.705(b) is amended to read: 30 (b) As against the buyer, the seller may stop delivery until 31 (1) receipt of the goods by the buyer;
01 (2) acknowledgment to the buyer by a bailee of the goods, except a 02 carrier, that the bailee holds the goods for the buyer; 03 (3) an [THAT] acknowledgment to the buyer under (1) or (2) of this 04 subsection by a carrier by reshipment or as a warehouse [WAREHOUSEMAN]; or 05 (4) negotiation to the buyer of a negotiable document of title covering 06 the goods. 07 * Sec. 20. AS 45.02.705(e) is amended to read: 08 (e) If a negotiable document of title has been issued for goods, the bailee is not 09 obliged to obey a notification to stop until surrender of possession or control of the 10 document. 11 * Sec. 21. AS 45.03.103(a)(10) is amended to read: 12 (10) "prove," with respect to a fact, means to meet the burden of 13 establishing the fact (AS 45.01.211) [(AS 45.01.201)]; 14 * Sec. 22. AS 45.04.104(c) is amended by adding a new paragraph to read: 15 (19) "control" (AS 45.07.116). 16 * Sec. 23. AS 45.04.210(c) is amended to read: 17 (c) Receipt by a collecting bank of a final settlement for an item is a 18 realization on its security interest in the item, accompanying documents, and proceeds. 19 So long as the bank does not receive final settlement for the item or give up possession 20 of the item or possession or control of the accompanying documents for purposes 21 other than collection, the security interest continues to that extent and is subject to 22 AS 45.29, but 23 (1) a security agreement is not necessary to make the security interest 24 enforceable (AS 45.29.203(b)(3)(A)); 25 (2) filing is not required to perfect the security interest; and 26 (3) the security interest has priority over conflicting perfected security 27 interests in the item, accompanying documents, or proceeds. 28 * Sec. 24. AS 45.05.103(c) is amended to read: 29 (c) With the exception of this subsection, (a) and (d) of this section, 30 AS 45.05.102(a)(9) and (10), 45.05.106(d), and 45.05.114(d), and except to the extent 31 prohibited in AS 45.01.302 [AS 45.01.102(c)] and AS 45.05.117(d), the effect of this
01 chapter may be varied by agreement or by a provision stated or incorporated by 02 reference in an undertaking. A term in an agreement or undertaking generally excusing 03 liability or generally limiting remedies for failure to perform obligations is not 04 sufficient to vary obligations prescribed by this chapter. 05 * Sec. 25. AS 45.07 is amended by adding new sections to read: 06 Sec. 45.07.111. Short title. This chapter may be cited as the Uniform 07 Commercial Code - Documents of Title. 08 Sec. 45.07.112. Definitions and index of definitions. (a) In this chapter, 09 unless the context otherwise requires, 10 (1) "bailee" means a person who, by a warehouse receipt, bill of 11 lading, or other document of title, acknowledges possession of goods and contracts to 12 deliver them; 13 (2) "carrier" means a person who issues a bill of lading; 14 (3) "consignee" means a person named in a bill of lading to whom or 15 to whose order the bill promises delivery; 16 (4) "consignor" means a person named in a bill of lading as the person 17 from whom the goods have been received for shipment; 18 (5) "delivery order" means a record that contains an order to deliver 19 goods directed to a warehouse, carrier, or other person who, in the ordinary course of 20 business, issues warehouse receipts or bills of lading; 21 (6) "goods" means all things that are treated as movable for the 22 purposes of a contract for storage or transportation; 23 (7) "issuer" means a bailee who issues a document of title or, in the 24 case of an unaccepted delivery order, the person who orders the possessor of goods to 25 deliver; "issuer" includes a person for whom an agent or employee purports to act in 26 issuing a document if the agent or employee has real or apparent authority to issue 27 documents, even if the issuer did not receive the goods, the goods were misdescribed, 28 or in another respect the agent or employee violated the issuer's instructions; 29 (8) "person entitled under the document" means the holder, in the case 30 of a negotiable document of title, or the person to whom delivery of the goods is to be 31 made by the terms of, or under instructions in a record under, a nonnegotiable
01 document of title; 02 (9) "shipper" means a person who enters into a contract of 03 transportation with a carrier; 04 (10) "sign" means, with present intent to authenticate or adopt a 05 record, to 06 (A) execute or adopt a tangible symbol; or 07 (B) attach to or logically associate with the record an electronic 08 sound, symbol, or process; 09 (11) "warehouse" means a person engaged in the business of storing 10 goods for hire. 11 (b) Definitions in other chapters applying to this chapter and the sections in 12 which the definitions appear are 13 (1) "contract for sale" (AS 45.02.106); 14 (2) "lessee in ordinary course of business" (AS 45.12.103); 15 (3) "receipt" of goods (AS 45.02.103). 16 (c) In addition, AS 45.01 contains general definitions and principles of 17 construction and interpretation applicable throughout this chapter. 18 Sec. 45.07.113. Relation of chapter to treaty or statute. (a) This chapter is 19 subject to a treaty or statute of the United States or regulatory statute of this state to 20 the extent the treaty, statute, or regulatory statute is applicable. 21 (b) This chapter does not modify or repeal a law prescribing the form or 22 content of a document of title or the services or facilities to be afforded by a bailee, or 23 otherwise regulating a bailee's business in respects not specifically treated in this 24 chapter. However, violation of a law described under the previous sentence does not 25 affect the status of a document of title that otherwise is within the definition of a 26 document of title. 27 (c) To the extent there is a conflict between AS 09.80 and this chapter, this 28 chapter governs. 29 Sec. 45.07.114. Negotiable and nonnegotiable document of title. (a) Except 30 as otherwise provided in (c) of this section, a document of title is negotiable if by its 31 terms the goods are to be delivered to bearer or to the order of a named person.
01 (b) A document of title other than one described in (a) of this section is 02 nonnegotiable. A bill of lading that states that the goods are consigned to a named 03 person is not made negotiable by a provision that the goods are to be delivered only 04 against an order in a record signed by the same or another named person. 05 (c) A document of title is nonnegotiable if, at the time it is issued, the 06 document has a conspicuous legend, however expressed, that it is nonnegotiable. 07 Sec. 45.07.115. Reissuance in alternative medium. (a) On request of a person 08 entitled under an electronic document of title, the issuer of the electronic document 09 may issue a tangible document of title as a substitute for the electronic document if 10 (1) the person entitled under the electronic document surrenders 11 control of the document to the issuer; and 12 (2) the tangible document when issued contains a statement that it is 13 issued in substitution for the electronic document. 14 (b) Upon issuance of a tangible document of title in substitution for an 15 electronic document of title under (a) of this section, 16 (1) the electronic document ceases to have effect or validity; and 17 (2) the person who procured issuance of the tangible document 18 warrants to all subsequent persons entitled under the tangible document that the 19 warrantor was a person entitled under the electronic document when the warrantor 20 surrendered control of the electronic document to the issuer. 21 (c) On request of a person entitled under a tangible document of title, the 22 issuer of the tangible document may issue an electronic document of title as a 23 substitute for the tangible document if 24 (1) the person entitled under the tangible document surrenders 25 possession of the document to the issuer; and 26 (2) the electronic document when issued contains a statement that it is 27 issued in substitution for the tangible document. 28 (d) On issuance of an electronic document of title in substitution for a tangible 29 document of title under (c) of this section, 30 (1) the tangible document ceases to have effect or validity; and 31 (2) the person who procured issuance of the electronic document
01 warrants to all subsequent persons entitled under the electronic document that the 02 warrantor was a person entitled under the tangible document when the warrantor 03 surrendered possession of the tangible document to the issuer. 04 Sec. 45.07.116. Control of electronic document of title. (a) A person has 05 control of an electronic document of title if a system employed for evidencing the 06 transfer of interests in the electronic document reliably establishes that person as the 07 person to whom the electronic document was issued or transferred. 08 (b) A system satisfies (a) of this section, and a person is considered to have 09 control of an electronic document of title, if the document is created, stored, and 10 assigned in a manner by which 11 (1) a single authoritative copy of the document exists that is unique, 12 identifiable, and, except as otherwise provided in (4), (5), and (6) of this subsection, 13 unalterable; 14 (2) the authoritative copy identifies the person asserting control as 15 (A) the person to whom the document was issued; or 16 (B) if the authoritative copy indicates that the document has 17 been transferred, the person to whom the document was most recently 18 transferred; 19 (3) the authoritative copy is communicated to and maintained by the 20 person asserting control or the person's designated custodian; 21 (4) copies or amendments that add or change an identified assignee of 22 the authoritative copy can be made only with the consent of the person asserting 23 control; 24 (5) each copy of the authoritative copy and a copy of a copy are readily 25 identifiable as a copy that is not the authoritative copy; and 26 (6) an amendment of the authoritative copy is readily identifiable as 27 authorized or unauthorized. 28 * Sec. 26. AS 45.07.201 is amended to read: 29 Sec. 45.07.201. Person who [WHO] may issue a warehouse receipt; storage 30 under [GOVERNMENT] bond. (a) A warehouse receipt may be issued by a 31 warehouse [WAREHOUSEMAN].
01 (b) If goods, including distilled spirits and agricultural commodities, are stored 02 under a statute requiring a bond against withdrawal or a license for the issuance of 03 receipts in the nature of warehouse receipts, a receipt issued for the goods is 04 considered to be [HAS LIKE EFFECT AS] a warehouse receipt even if [THOUGH] 05 issued by a person who is the owner of the goods and is not a warehouse 06 [WAREHOUSEMAN]. 07 * Sec. 27. AS 45.07.202 is repealed and reenacted to read: 08 Sec. 45.07.202. Form of warehouse receipt; effect of omission. (a) A 09 warehouse receipt need not be in a particular form. 10 (b) Unless a warehouse receipt provides for each of the following, the 11 warehouse is liable for damages caused to a person injured by its omission: 12 (1) a statement of the location of the warehouse facility where the 13 goods are stored; 14 (2) the date of issue of the receipt; 15 (3) the unique identification code of the receipt; 16 (4) a statement whether the goods received will be delivered to the 17 bearer, to a named person, or to a named person or the named person's order; 18 (5) the rate of storage and handling charges, unless goods are stored 19 under a field warehousing arrangement, in which case a statement of that fact is 20 sufficient on a nonnegotiable receipt; 21 (6) a description of the goods or the packages containing them; 22 (7) the signature of the warehouse or its agent; 23 (8) if the receipt is issued for goods that the warehouse owns, solely, 24 jointly, or in common with others, a statement of that ownership; and 25 (9) a statement of the amount of advances made and of liabilities 26 incurred for which the warehouse claims a lien or security interest, unless the precise 27 amount of advances made or liabilities incurred, at the time of the issue of the receipt, 28 is unknown to the warehouse or to its agent who issued the receipt, in which case, a 29 statement of the fact that advances have been made or liabilities incurred and the 30 purpose of the advances or liabilities is sufficient. 31 (c) A warehouse may insert in its receipt terms that are not contrary to the
01 code and do not impair its obligation of delivery under AS 45.07.403 or its duty of 02 care under AS 45.07.204. A contrary provision is ineffective. 03 * Sec. 28. AS 45.07.203 is amended to read: 04 Sec. 45.07.203. Liability for nonreceipt or misdescription. A party to or 05 purchaser for value in good faith of a document of title, other than a bill of lading, that 06 relies on [RELYING IN EITHER CASE UPON] the description of the goods in the 07 document [OF THE GOODS] may recover from the issuer damages caused by the 08 nonreceipt or misdescription of the goods, except to the extent that 09 (1) the document conspicuously indicates that the issuer does not know 10 whether [ANY PART OR] all or part of the goods in fact were received or conform 11 to the description, as in the case where the description is in terms of marks or labels 12 or [OF] kind, quantity, or condition, or the receipt or description is qualified by 13 "contents, condition, and quality unknown," "said to contain," or words of similar 14 import [THE LIKE], if this indication is true; [,] or 15 (2) the party or purchaser otherwise has notice of the nonreceipt or 16 misdescription. 17 * Sec. 29. AS 45.07.204 is amended to read: 18 Sec. 45.07.204. Duty of care; contractual limitation of warehouse's 19 [WAREHOUSEMAN'S] liability. (a) A warehouse [WAREHOUSEMAN] is liable 20 for damages for loss of or injury to the goods caused by the warehouse's failure to 21 exercise [THE] care with [IN] regard to the goods [THEM] that a reasonably careful 22 person would exercise under similar [LIKE] circumstances. Unless [, BUT, UNLESS] 23 otherwise agreed, the warehouse [WAREHOUSEMAN] is not liable for damages that 24 could not have been avoided by the exercise of this care. 25 (b) Damages may be limited by a term in the warehouse receipt or storage 26 agreement limiting the amount of liability in case of loss or damage [, AND SETTING 27 OUT A SPECIFIC LIABILITY PER ARTICLE OR ITEM, OR VALUE PER UNIT 28 OF WEIGHT,] beyond which the warehouse is [WAREHOUSEMAN SHALL] not 29 [BE] liable. The limitation is not effective with respect to the warehouse's liability 30 for conversion to its own use. On [; HOWEVER, THIS LIABILITY MAY, ON 31 WRITTEN] request of the bailor in a record at the time of signing the storage
01 agreement, or within a reasonable time after receipt of the warehouse receipt, the 02 warehouse's liability may be increased on part or all of the goods covered by the 03 storage agreement or [UNDER] the warehouse receipt [OR AGREEMENT]. In this 04 event, increased rates may be charged based on an [THE] increased valuation of the 05 goods [, BUT NO INCREASE MAY BE PERMITTED CONTRARY TO A 06 LAWFUL LIMITATION OF LIABILITY CONTAINED IN THE 07 WAREHOUSEMAN'S TARIFF. NO LIMITATION IS EFFECTIVE WITH 08 RESPECT TO THE WAREHOUSEMAN'S LIABILITY FOR CONVERSION TO 09 THE WAREHOUSEMAN'S OWN USE]. 10 (c) Reasonable provisions as to the time and manner of presenting claims and 11 commencing [INSTITUTING] actions based on the bailment may be included in the 12 warehouse receipt or storage agreement [TARIFF]. 13 * Sec. 30. AS 45.07.205 is amended to read: 14 Sec. 45.07.205. Title under warehouse receipt defeated in certain cases. A 15 buyer in [THE] ordinary course of business of fungible goods sold and delivered by a 16 warehouse that [WAREHOUSEMAN WHO] is also in the business of buying and 17 selling those [THE] goods takes the goods free of any [A] claim under a warehouse 18 receipt even if the receipt is negotiable and [THOUGH IT] has been duly negotiated. 19 * Sec. 31. AS 45.07.206 is amended to read: 20 Sec. 45.07.206. Termination of storage at warehouse's 21 [WAREHOUSEMAN'S] option. (a) A warehouse [WAREHOUSEMAN] may, by 22 giving notice to [ON NOTIFYING] the person on whose account the goods are held 23 and [ANY] other persons [PERSON] known to claim an interest in the goods, require 24 payment of any charges and removal of the goods from the warehouse at the 25 termination of the period of storage fixed by the document of title, or, if a [NO] period 26 is not fixed, within a stated period not less than 30 days after the warehouse gives 27 notice [NOTIFICATION]. If the goods are not removed before the date specified in 28 the notice [NOTIFICATION], the warehouse [WAREHOUSEMAN] may sell them 29 under AS 45.07.210 [IN ACCORDANCE WITH THE PROVISIONS OF THE 30 SECTION ON ENFORCEMENT OF A WAREHOUSEMAN'S LIEN 31 (AS 45.07.210)].
01 (b) If a warehouse [WAREHOUSEMAN] in good faith believes that [THE] 02 goods are about to deteriorate or decline in value to less than the amount of its [THE] 03 lien within the time provided [PRESCRIBED] in (a) of this section and AS 45.07.210 04 [FOR NOTIFICATION, ADVERTISEMENT, AND SALE], the warehouse 05 [WAREHOUSEMAN] may specify in the notice given under (a) of this section 06 [NOTIFICATION] a reasonable shorter time for removal of the goods and, if [IN 07 CASE] the goods are not removed, may sell them at public sale held not less than one 08 week after a single advertisement or posting. 09 (c) If, as a result of a quality or condition of the goods of which the 10 warehouse did not have [WAREHOUSEMAN HAD NO] notice at the time of 11 deposit, the goods are a hazard to other property, [OR TO] the warehouse facilities, or 12 other [TO] persons, the warehouse [WAREHOUSEMAN] may sell the goods at 13 public or private sale without advertisement or posting on reasonable notification to 14 all persons known to claim an interest in the goods. If the warehouse, 15 [WAREHOUSEMAN] after a reasonable effort, is unable to sell the goods, the 16 warehouse [WAREHOUSEMAN] may dispose of them in a lawful manner and does 17 not incur [; THE WAREHOUSEMAN INCURS NO] liability by reason of this 18 disposition. 19 (d) A warehouse shall [THE WAREHOUSEMAN MUST] deliver the goods 20 to a person entitled to them under this chapter on [UPON] due demand made at any 21 time before sale or other disposition under this section. 22 (e) A warehouse [THE WAREHOUSEMAN] may satisfy the warehouse's 23 lien from the proceeds of a sale or disposition under this section, but shall [MUST] 24 hold the balance for delivery on the demand of a person to whom the warehouse 25 [WAREHOUSEMAN] would have been bound to deliver the goods. 26 * Sec. 32. AS 45.07.207 is amended to read: 27 Sec. 45.07.207. Goods must be kept separate; fungible goods. (a) Unless the 28 warehouse receipt provides otherwise [PROVIDES], a warehouse shall 29 [WAREHOUSEMAN MUST] keep separate the goods covered by each receipt so as 30 to permit at all times identification and delivery of those goods. However, [EXCEPT 31 THAT] different lots of fungible goods may be commingled.
01 (b) If different lots of fungible [FUNGIBLE] goods are [SO] commingled, 02 the goods are owned in common by the persons entitled to them, and the warehouse 03 [WAREHOUSEMAN] is severally liable to each owner for that owner's share. If, 04 because of overissue, a mass of fungible goods is insufficient to meet all the receipts 05 that the warehouse [WAREHOUSEMAN] has issued against it, the persons entitled 06 include all holders to whom overissued receipts have been duly negotiated. 07 * Sec. 33. AS 45.07.208 is amended to read: 08 Sec. 45.07.208. Altered warehouse receipts. If a blank in a negotiable 09 warehouse receipt has been filled in without authority, a good faith purchaser for 10 value and without notice of the lack [WANT] of authority may treat the insertion as 11 authorized. Any other unauthorized alteration leaves a tangible or electronic 12 warehouse receipt enforceable against the issuer according to its original tenor. 13 * Sec. 34. AS 45.07.209 is amended to read: 14 Sec. 45.07.209. Lien of warehouse [WAREHOUSEMAN]. (a) A warehouse 15 [WAREHOUSEMAN] has a lien against the bailor on the goods covered by a 16 warehouse receipt or storage agreement or on the proceeds of the goods in the 17 warehouse's [WAREHOUSEMAN'S] possession for charges for storage or 18 transportation, [(] including demurrage and terminal charges [)] , insurance, labor, or 19 other charges, present or future, in relation to the goods, and for expenses necessary 20 for preservation of the goods or reasonably incurred in their sale under law. If the 21 person on whose account the goods are held is liable for similar [LIKE] charges or 22 expenses in relation to other goods [,] whenever deposited and it is stated in the 23 warehouse receipt or storage agreement that a lien is claimed for charges and 24 expenses in relation to other goods, the warehouse [WAREHOUSEMAN] also has a 25 lien against the goods covered by the warehouse receipt or storage agreement or 26 on the proceeds of the goods in its possession [THAT PERSON] for these charges 27 and expenses, whether or not the other goods have been delivered by the warehouse 28 [WAREHOUSEMAN]. However, as [BUT] against a person to whom a negotiable 29 warehouse receipt is duly negotiated, a warehouse's [WAREHOUSEMAN'S] lien is 30 limited to charges in an amount or at a rate specified in [ON] the warehouse receipt 31 or, if no charges are [SO] specified, then to a reasonable charge for storage of the
01 specific goods covered by the receipt after the date of the receipt. 02 (b) A warehouse [THE WAREHOUSEMAN] may also reserve a security 03 interest against the bailor for the [A] maximum amount specified on the receipt for 04 charges other than those specified in (a) of this section, such as for money advanced 05 and interest. The [SUCH A] security interest is governed by AS 45.29 [ON 06 SECURED TRANSACTIONS]. 07 (c) A warehouse's [WAREHOUSEMAN'S] lien for charges and expenses 08 under (a) of this section or a security interest under (b) of this section is also effective 09 against a person who [SO] entrusted the bailor with possession of the goods to the 10 extent that a pledge of them by the bailor to a good faith purchaser for value would 11 have been valid. However, the lien or security interest [, BUT] is not effective 12 against a person who, before issuance of a document of title, had a legal interest or 13 a perfected security interest in the goods and did not 14 (1) deliver or entrust the goods or a document of title covering the 15 goods to the bailor or the bailor's nominee with 16 (A) actual or apparent authority to ship, store, or sell; 17 (B) power to obtain delivery under AS 45.07.403; or 18 (C) power of disposition under AS 45.02.403, 19 AS 45.12.304(b), 45.12.305(b), AS 45.29.320, 45.29.321(c), or other statute 20 or rule of law; or 21 (2) acquiesce in the procurement by the bailor or its nominee of a 22 document [AS TO WHOM THE DOCUMENT CONFERS NO RIGHT IN THE 23 GOODS COVERED BY IT UNDER AS 45.07.503]. 24 (d) A warehouse [WAREHOUSEMAN] loses its [THE] lien on any goods 25 that the warehouse [WAREHOUSEMAN] voluntarily delivers or unjustifiably 26 refuses to deliver. 27 * Sec. 35. AS 45.07.209 is amended by adding a new subsection to read: 28 (e) A warehouse's lien on household goods for charges and expenses in 29 relation to the goods under (a) of this section is also effective against all persons if the 30 depositor was the legal possessor of the goods at the time of deposit. In this 31 subsection, "household goods" means furniture, furnishings, or personal effects used
01 by the depositor in a dwelling. 02 * Sec. 36. AS 45.07.210(a) is amended to read: 03 (a) Except as otherwise provided in (b) of this section, a warehouse's 04 [WAREHOUSEMAN'S] lien may be enforced by public or private sale of the goods, 05 in block or in packages [PARCELS], at any time or place, and on any terms that are 06 commercially reasonable, after notifying all persons known to claim an interest in the 07 goods. This notification must include a statement of the amount due, the nature of the 08 proposed sale, and the time and place of any [A] public sale. The fact that a better 09 price could have been obtained by a sale at a different time or in a method different 10 [METHOD] from that selected by the warehouse [WAREHOUSEMAN] is not of 11 itself sufficient to establish that the sale was not made in a commercially reasonable 12 manner. The warehouse [IF THE WAREHOUSEMAN EITHER] sells in a 13 commercially reasonable manner if the warehouse sells the goods in the usual 14 manner in a recognized market for the goods, [OR IF THE WAREHOUSEMAN] sells 15 at the price current in the market at the time of the sale, or [IF THE 16 WAREHOUSEMAN HAS] otherwise sells [SOLD] in conformity with commercially 17 reasonable practices among dealers in the type of goods sold [, THE 18 WAREHOUSEMAN HAS SOLD IN A COMMERCIALLY REASONABLE 19 MANNER]. A sale of more goods than apparently necessary to be offered to ensure 20 [INSURE] satisfaction of the obligation is not commercially reasonable, except in 21 cases covered by the preceding sentence. 22 * Sec. 37. AS 45.07.210(b) is amended to read: 23 (b) A warehouse may enforce its [WAREHOUSEMAN'S] lien on goods, 24 other than goods stored by a merchant in the course of the merchant's business, [MAY 25 BE ENFORCED] only if the following requirements are satisfied [AS FOLLOWS]: 26 (1) all persons known to claim an interest in the goods must have been 27 [BE] notified; 28 (2) [THE NOTIFICATION MUST BE DELIVERED IN PERSON OR 29 SENT BY REGISTERED LETTER TO THE LAST KNOWN ADDRESS OF A 30 PERSON TO BE NOTIFIED; 31 (3)] the notification must include an itemized statement of the claim, a
01 description of the goods subject to the lien, a demand for payment within a specified 02 time not less than 10 days after receipt of the notification, and a conspicuous statement 03 that, unless the claim is paid within that time, the goods will be advertised for sale and 04 sold by auction at a specified time and place; 05 (3) [(4)] the sale must conform to the terms of the notification; 06 (4) [(5)] the sale must be held at the nearest suitable place to [THAT] 07 where the goods are held or stored; 08 (5) [(6)] after the expiration of the time given in the notification, an 09 advertisement of the sale must be published once a week for two weeks consecutively 10 in a newspaper of general circulation where the sale is to be held; the [THE] 11 advertisement must include a description of the goods, the name of the person on 12 whose account the goods [THEY] are being held, and the time and place of the sale; 13 the [. THE] sale must take place at least 15 days after the first publication; if [. IF] 14 there is no newspaper of general circulation where the sale is to be held, the 15 advertisement must be posted at least 10 days before the sale in not fewer [LESS] than 16 three conspicuous places in the neighborhood of the proposed sale. 17 * Sec. 38. AS 45.07.210(c) is amended to read: 18 (c) Before a sale under this section, a person claiming a right in the goods may 19 pay the amount necessary to satisfy the lien and the reasonable expenses incurred in 20 complying with [UNDER] this section. In that event, the goods may [MUST] not be 21 sold, but must be retained by the warehouse [WAREHOUSEMAN] subject to the 22 terms of the receipt and this chapter. 23 * Sec. 39. AS 45.07.210(d) is amended to read: 24 (d) A warehouse [THE WAREHOUSEMAN] may buy at a public sale held 25 under this section. 26 * Sec. 40. AS 45.07.210(e) is amended to read: 27 (e) A purchaser in good faith of goods sold to enforce a warehouse's 28 [WAREHOUSEMAN'S] lien takes the goods free of the rights of persons against 29 whom the lien was valid, despite the warehouse's noncompliance [BY THE 30 WAREHOUSEMAN] with [THE REQUIREMENTS OF] this section. 31 * Sec. 41. AS 45.07.210(f) is amended to read:
01 (f) A warehouse [THE WAREHOUSEMAN] may satisfy its [THE] lien from 02 the proceeds of a sale under this section, but shall [MUST] hold the balance, if any, 03 for delivery on demand to a person to whom the warehouse [WAREHOUSEMAN] 04 would have been bound to deliver the goods. 05 * Sec. 42. AS 45.07.210(i) is amended to read: 06 (i) A warehouse [THE WAREHOUSEMAN] is liable 07 for damages caused by failure to comply with the requirements for sale 08 under this section and, in case of [A] wilful violation, is liable for 09 conversion. 10 * Sec. 43. AS 45.07.301 is amended to read: 11 Sec. 45.07.301. Liability for nonreceipt or misdescription; "said to 12 contain"; "shipper's weight, load, and count"; improper handling. (a) A 13 consignee of a nonnegotiable bill of lading who has given value in good faith, or a 14 holder to whom a negotiable bill has been duly negotiated, relying on [IN EITHER 15 CASE UPON] the description in the bill of the goods or on [UPON] the date shown in 16 the bill, may recover [,] from the issuer [,] damages caused by the misdating of the bill 17 or the nonreceipt or misdescription of the goods, except to the extent that the bill 18 [DOCUMENT] indicates that the issuer does not know whether a [ANY] part or all of 19 the goods in fact were received or conform to the description, as where the description 20 is in terms of marks or labels or kind, quantity, or condition or the receipt or 21 description is qualified by "contents or condition of contents of packages unknown," 22 "said to contain," "shipper's weight, load, and count," or words of similar import 23 [THE LIKE], if this indication is true. 24 (b) If goods are loaded by the [AN] issuer of a bill of lading [WHO IS A 25 COMMON CARRIER], 26 (1) the issuer shall [MUST] count the packages of goods if shipped in 27 packages [PACKAGE FREIGHT] and ascertain the kind and quantity if shipped in 28 bulk; and 29 (2) the words, [FREIGHT. IN THIS CASE] "shipper's weight, load, 30 and count," or other words of similar import indicating that the description was made 31 by the shipper are ineffective except as to goods [FREIGHT] concealed in [BY]
01 packages. 02 (c) If bulk goods are [FREIGHT IS] loaded by a shipper who makes available 03 to the issuer of a bill of lading adequate facilities for weighing those goods [THE 04 FREIGHT], the [AN] issuer shall [WHO IS A COMMON CARRIER MUST] 05 ascertain the kind and quantity within a reasonable time after receiving the shipper's 06 [WRITTEN] request in a record [OF THE SHIPPER] to ascertain the kind and 07 quantity [DO SO]. In this case, "shipper's weight" or other words of similar import 08 [LIKE PURPORT] are ineffective. 09 (d) The issuer of a bill of lading, [MAY] by including [INSERTING] in the 10 bill the words "shipper's weight, load, and count" or [OTHER] words of similar 11 import, may [LIKE PURPORT] indicate that the goods were loaded by the shipper, 12 [;] and, if the statement is true, the issuer is not liable for damages caused by the 13 improper loading. However, [BUT THEIR] omission of these words does not imply 14 liability for [THE] damages by improper loading. 15 (e) A [THE] shipper guarantees [IS CONSIDERED TO HAVE 16 GUARANTEED] to an [THE] issuer the accuracy at the time of shipment of the 17 description, marks, labels, number, kind, quantity, condition, and weight as furnished 18 by the shipper, [;] and the shipper shall indemnify the issuer against damage caused by 19 inaccuracies in these particulars. This [THE] right of [THE ISSUER TO THIS] 20 indemnity does not limit [IN NO WAY LIMITS] the issuer's responsibility or [AND] 21 liability under the contract of carriage to a person other than the shipper. 22 * Sec. 44. AS 45.07.302 is amended to read: 23 Sec. 45.07.302. Through bills of lading and similar documents of title. (a) 24 The issuer of a through bill of lading, or other document of title embodying an 25 undertaking to be performed in part by a person [PERSONS] acting as the issuer's 26 agent [AGENTS] or by a performing carrier, [CONNECTING CARRIERS] is 27 liable to a person [ANYONE] entitled to recover on the bill or other document for a 28 breach by the other person [PERSONS] or the performing [BY A CONNECTING] 29 carrier of its obligation under the bill or other document. However [, BUT], to the 30 extent that the bill or other document covers an undertaking to be performed 31 overseas or in territory not contiguous to the continental United States or an
01 undertaking including matters other than transportation, this liability for breach by 02 the other person or the performing carrier may be varied by agreement of the 03 parties. 04 (b) If goods covered by a through bill of lading or other document of title 05 embodying an undertaking to be performed in part by a person other than the issuer 06 are received by the other person, the [THAT] person is subject, with respect to its own 07 [THE PERSON'S] performance while the goods are in its [THE PERSON'S] 08 possession, to the obligation of the issuer. The person's obligation is discharged by 09 delivery of the goods to another [SUCH] person under the bill or other document, and 10 does not include liability for breach by another [SUCH] person or by the issuer. 11 (c) The issuer of a [THE] through bill of lading or other document of title 12 described in (a) of this section may recover [,] from the performing 13 [CONNECTING] carrier, or other person in possession of the goods when the breach 14 of the obligation under the bill [DOCUMENT] occurred, the amount 15 (1) the issuer may be [IS] required to pay to a person [ANYONE] 16 entitled to recover on the bill or other document for the breach, as may be evidenced 17 by a receipt, judgment, or transcript of judgment; [THAT AMOUNT,] and 18 (2) [THE AMOUNT] of an expense reasonably incurred by the issuer 19 [CARRIER] in defending an action commenced [BROUGHT] by a person 20 [ANYONE] entitled to recover on the bill or other document for the breach. 21 * Sec. 45. AS 45.07.303 is amended to read: 22 Sec. 45.07.303. Diversion; reconsignment; change of instructions. (a) 23 Unless the bill of lading otherwise provides, a [THE] carrier may deliver the goods to 24 a person or destination other than that stated in the bill or may otherwise dispose of the 25 goods, without liability for misdelivery, on instructions from 26 (1) the holder of a negotiable bill; 27 (2) the consignor on a nonnegotiable bill, even if the consignee has 28 given [NOTWITHSTANDING] contrary instructions [INSTRUCTION FROM THE 29 CONSIGNEE]; 30 (3) the consignee on a nonnegotiable bill in the absence of contrary 31 instructions from the consignor, if the goods have arrived at the billed destination or if
01 the consignee is in possession of the tangible bill or in control of the electronic bill; 02 or 03 (4) the consignee on a nonnegotiable bill, if the consignee is entitled as 04 against the consignor to dispose of the goods [THEM]. 05 (b) Unless [THE] instructions described in (a) of this section are included in 06 [NOTED ON] a negotiable bill of lading, a person to whom the bill is duly negotiated 07 may [CAN] hold the bailee according to the original terms. 08 * Sec. 46. AS 45.07.304 is amended to read: 09 Sec. 45.07.304. Tangible bills [BILLS] of lading in a set. (a) Except as 10 [WHERE] customary in international [OVERSEAS] transportation, a tangible bill of 11 lading may [MUST] not be issued in a set of parts. The issuer is liable for damages 12 caused by violation of this subsection. 13 (b) If a tangible bill of lading is lawfully issued [DRAWN] in a set of parts, 14 each of which contains an identification code and is [NUMBERED AND] expressed 15 to be valid only if the goods have not been delivered against another [ANY OTHER] 16 part, the whole of the parts constitutes one bill. 17 (c) If a tangible negotiable bill of lading is lawfully issued in a set of parts 18 and different parts are negotiated to different persons, the title of the holder to whom 19 the first due negotiation is made prevails as to both the document of title and the 20 goods even if [THOUGH] a later holder may have received the goods from the carrier 21 in good faith and discharged the carrier's obligation by surrendering its 22 [SURRENDER OF THE LATER HOLDER'S] part. 23 (d) A person who negotiates or transfers a single part of a tangible bill of 24 lading issued [DRAWN] in a set is liable to holders of that part as if it were the whole 25 set. 26 (e) The bailee shall [IS OBLIGED TO] deliver in accordance with 27 AS 45.07.401 - 45.07.404 against the first presented part of a tangible bill of lading 28 lawfully issued [DRAWN] in a set. Delivery in this manner [THIS DELIVERY] 29 discharges the bailee's obligation on the whole bill. 30 * Sec. 47. AS 45.07.305(b) is amended to read: 31 (b) Upon request of a person [ANYONE] entitled as against a [THE] carrier
01 to control the goods while in transit and on surrender of possession or control of an 02 outstanding bill of lading or other receipt covering the goods, the issuer, subject to 03 AS 45.07.115, may procure a substitute bill to be issued at a [ANY] place designated 04 in the request. 05 * Sec. 48. AS 45.07.307 is amended to read: 06 Sec. 45.07.307. Lien of carrier. (a) A carrier has a lien on the goods covered 07 by a bill of lading or on the proceeds of the goods in its possession for charges after 08 the date of the carrier's [ITS] receipt of the goods for storage or transportation, 09 including demurrage and terminal charges, and for expenses necessary for 10 preservation of the goods incident to their transportation or reasonably incurred in 11 their sale under [PURSUANT TO] law. However, [BUT] against a purchaser for 12 value of a negotiable bill of lading, a carrier's lien is limited to charges stated in the 13 bill or the applicable tariffs, or, if no charges are stated, [THEN] to a reasonable 14 charge. 15 (b) A lien for charges and expenses under (a) of this section on goods that the 16 carrier was required by law to receive for transportation is effective against the 17 consignor or a person entitled to the goods unless the carrier had notice that the 18 consignor lacked authority to subject the goods to the charges and expenses. Another 19 [ANY OTHER] lien under (a) of this section is effective against the consignor and a 20 person who permitted the bailor to have control or possession of the goods unless the 21 carrier had notice that the bailor lacked [THE] authority. 22 (c) A carrier loses its [THE] lien on goods that the carrier voluntarily delivers 23 or unjustifiably refuses to deliver. 24 * Sec. 49. AS 45.07.308(a) is amended to read: 25 (a) A carrier's lien on goods may be enforced by public or private sale of the 26 goods, in bulk [BLOCK] or in packages [PARCELS], at any time or place, and on 27 [ANY] terms that are commercially reasonable, after notifying all persons known to 28 claim an interest in the goods. The [THIS] notification must include a statement of the 29 amount due, the nature of the proposed sale, and the time and place of any [A] public 30 sale. The fact that a better price could have been obtained by a sale at a different time 31 or by [IN] a [DIFFERENT] method different from that selected by the carrier is not
01 of itself sufficient to establish that the sale was not made in a commercially reasonable 02 manner. The [IF THE] carrier [EITHER] sells [THE] goods in a commercially 03 reasonable [THE USUAL] manner if the carrier sells the goods in the usual 04 manner in a recognized market for them, [OR IF THE CARRIER] sells at the price 05 current in that [THE] market at the time of the sale, or [IF THE CARRIER HAS] 06 otherwise sells [SOLD] in conformity with commercially reasonable practices among 07 dealers in the type of goods sold [, THE CARRIER HAS SOLD IN A 08 COMMERCIALLY REASONABLE MANNER]. A sale of more goods than 09 apparently necessary to be offered to ensure satisfaction of the obligation is not 10 commercially reasonable except in cases covered by the preceding sentence. 11 * Sec. 50. AS 45.07.308(b) is amended to read: 12 (b) Before a sale under this section, a person claiming a right in the goods may 13 pay the amount necessary to satisfy the lien and the reasonable expenses incurred in 14 complying with [UNDER] this section. In that event, the goods may [MUST] not be 15 sold [,] but must be retained by the carrier, subject to the terms of the bill of lading 16 and this chapter. 17 * Sec. 51. AS 45.07.308(c) is amended to read: 18 (c) A [THE] carrier may buy at a public sale under this section. 19 * Sec. 52. AS 45.07.308(d) is amended to read: 20 (d) A purchaser in good faith of goods sold to enforce a carrier's lien takes the 21 goods free of the rights of persons against whom the lien was valid, despite the 22 carrier's noncompliance [BY THE CARRIER] with [THE REQUIREMENTS OF] 23 this section. 24 * Sec. 53. AS 45.07.308(e) is amended to read: 25 (e) A [THE] carrier may satisfy the carrier's lien from the proceeds of a sale 26 under this section, but shall [MUST] hold the balance, if any, for delivery on demand 27 to a person to whom the carrier would have been bound to deliver the goods. 28 * Sec. 54. AS 45.07.308(h) is amended to read: 29 (h) A [THE] carrier is liable for damages caused by failure to comply with the 30 requirements for sale under this section and, in case of wilful violation, is liable for 31 conversion.
01 * Sec. 55. AS 45.07.309 is amended to read: 02 Sec. 45.07.309. Duty of care; contractual limitation of carrier's liability. (a) 03 A carrier who issues a bill of lading, whether negotiable or nonnegotiable, shall 04 [MUST] exercise the degree of care in relation to the goods that a reasonably careful 05 person [MAN] would exercise under similar [LIKE] circumstances. This subsection 06 does not affect a statute, regulation, [REPEAL OR CHANGE ANY LAW] or rule of 07 law that imposes liability on [UPON] a common carrier for damages not caused by its 08 negligence. 09 (b) Damages may be limited by a term in the bill of lading or in a 10 transportation agreement [PROVISION] that the carrier's liability may [SHALL] 11 not exceed a value stated in the bill or transportation agreement [DOCUMENT] if 12 the carrier's rates are dependent on [UPON] value and the consignor [BY THE 13 CARRIER'S TARIFF] is afforded an opportunity to declare a higher value and [OR A 14 VALUE AS LAWFULLY PROVIDED IN THE TARIFF, OR IF NO TARIFF IS 15 FILED] the consigner is [OTHERWISE] advised of this opportunity. However, the [; 16 BUT NO SUCH] limitation is not effective with respect to the carrier's liability for 17 conversion to its own use. 18 (c) Reasonable provisions as to the time and manner of presenting claims and 19 commencing [INSTITUTING] actions based on the shipment may be included in a 20 bill of lading or a transportation agreement [TARIFF]. 21 * Sec. 56. AS 45.07.401 is amended to read: 22 Sec. 45.07.401. Irregularities in issue of receipt or bill or conduct of issuer. 23 The obligations imposed by this chapter on an issuer apply to a document of title even 24 if [REGARDLESS OF THE FACT THAT] 25 (1) the document does [MAY] not comply with the requirements of 26 this chapter or another statute, a [OF ANY OTHER LAW OR] regulation, or 27 another rule of law regarding its issuance [ISSUE], form, or content; 28 (2) the issuer [MAY HAVE] violated laws regulating the conduct of 29 the issuer's business; 30 (3) the goods covered by the document were owned by the bailee 31 when [AT THE TIME] the document was issued; or
01 (4) the person issuing the document is [DOES] not a warehouse but 02 the document [COME WITHIN THE DEFINITION OF WAREHOUSEMAN IF IT] 03 purports to be a warehouse receipt. 04 * Sec. 57. AS 45.07.402 is amended to read: 05 Sec. 45.07.402. Duplicate document of title [RECEIPT OR BILL]; 06 overissue. A [NEITHER A] duplicate or another [NOR ANY OTHER] document of 07 title purporting to cover goods already represented by an outstanding document of the 08 same issuer does not confer [CONFERS] a right in the goods, except as provided in 09 the case of tangible bills of lading in a set of parts, overissue of documents for 10 fungible goods, [AND] substitutes for lost, stolen, or destroyed documents, or 11 substitute documents issued under AS 45.07.115. The [BUT THE] issuer is liable 12 for damages caused by the issuer's overissue or failure to identify a duplicate 13 document [AS SUCH] by a conspicuous notation [ON ITS FACE]. 14 * Sec. 58. AS 45.07.403(a) is amended to read: 15 (a) A [THE] bailee shall [MUST] deliver the goods to a person entitled under 16 a [THE] document of title if the person [WHO] complies with (b) and (c) of this 17 section, unless and to the extent that the bailee establishes [ESTABLISHED] any of 18 the following: 19 (1) delivery of the goods to a person whose receipt was rightful as 20 against the claimant; 21 (2) damage to or delay, loss, or destruction of the goods for which the 22 bailee is not liable; 23 (3) previous sale or other disposition of the goods in lawful 24 enforcement of a lien or on a warehouse's [WAREHOUSEMAN'S] lawful 25 termination of storage; 26 (4) the exercise by a seller of its [THE] right to stop delivery under 27 AS 45.02.705 or by a lessor of its right to stop delivery under AS 45.12.526; 28 (5) a diversion, reconsignment, or other disposition under 29 AS 45.07.303 [OR TARIFF REGULATING THIS RIGHT]; 30 (6) release, satisfaction, or another [ANY OTHER FACT 31 AFFORDING A] personal defense against the claimant; or
01 (7) another [ANY OTHER] lawful excuse. 02 * Sec. 59. AS 45.07.403(b) is amended to read: 03 (b) A person claiming goods covered by a document of title shall [MUST] 04 satisfy the bailee's lien if the bailee [SO] requests the person to satisfy the lien or if 05 the bailee is prohibited by law from delivering the goods until the charges are paid. 06 * Sec. 60. AS 45.07.403(c) is amended to read: 07 (c) Unless the person claiming the goods is a person [ONE] against whom 08 the document of title does not confer a [CONFERS NO] right under 09 AS 45.07.503(a), 10 (1) the person claiming under a document shall [MUST] surrender 11 possession [FOR CANCELLATION] or control of [NOTATION OF PARTIAL 12 DELIVERIES] an outstanding negotiable document covering the goods for 13 cancellation or indication of partial deliveries; [,] and 14 (2) the bailee shall [MUST] cancel the document or conspicuously 15 indicate in [NOTE] the document the partial delivery, [ON THE DOCUMENT] or 16 the bailee is [BE] liable to a person to whom the document is duly negotiated. 17 * Sec. 61. AS 45.07.404 is amended to read: 18 Sec. 45.07.404. No liability for good faith delivery under document of title 19 [PURSUANT TO RECEIPT OR BILL]. A bailee who, in good faith, [INCLUDING 20 OBSERVANCE OF REASONABLE COMMERCIAL STANDARDS,] has received 21 goods and delivered or otherwise disposed of the goods [THEM] according to the 22 terms of a [THE] document of title or under this chapter is not liable for the goods 23 [THAT DISPOSAL. THIS RULE APPLIES] even if [THOUGH] the person 24 (1) from whom the bailee received the goods did not have [HAD NO] 25 authority to procure the document or to dispose of the goods; or 26 (2) [AND EVEN THOUGH THE PERSON] to whom the bailee 27 delivered the goods did not have [HAD NO] authority to receive the goods [THEM]. 28 * Sec. 62. AS 45.07.501 is repealed and reenacted to read: 29 Sec. 45.07.501. Form of negotiation and requirements of due negotiation. 30 (a) The following rules apply to a negotiable tangible document of title: 31 (1) if the document's original terms run to the order of a named person,
01 the document is negotiated by the named person's endorsement and delivery; after the 02 named person's endorsement in blank or to bearer, a person may negotiate the 03 document by delivery alone; 04 (2) if the document's original terms run to bearer, it is negotiated by 05 delivery alone; 06 (3) if the document's original terms run to the order of a named person 07 and it is delivered to the named person, the effect is the same as if the document had 08 been negotiated; 09 (4) negotiation of the document after it has been endorsed to a named 10 person requires endorsement by the named person and delivery; 11 (5) a document is duly negotiated if it is negotiated in the manner 12 stated in this subsection to a holder who purchases it in good faith, without notice of a 13 defense against or claim to it on the part of a person, and for value, unless it is 14 established that the negotiation is not in the regular course of business or financing or 15 involves receiving the document in settlement or payment of a monetary obligation. 16 (b) The following rules apply to a negotiable electronic document of title: 17 (1) if the document's original terms run to the order of a named person 18 or to bearer, the document is negotiated by delivery of the document to another 19 person; endorsement by the named person is not required to negotiate the document; 20 (2) if the document's original terms run to the order of a named person 21 and the named person has control of the document, the effect is the same as if the 22 document had been negotiated; 23 (3) a document is duly negotiated if it is negotiated in the manner 24 stated in this subsection to a holder who purchases it in good faith, without notice of a 25 defense against or claim to it on the part of a person, and for value, unless it is 26 established that the negotiation is not in the regular course of business or financing or 27 involves taking delivery of the document in settlement or payment of a monetary 28 obligation. 29 (c) Endorsement of a nonnegotiable document of title does not make it 30 negotiable or add to the transferee's rights. 31 (d) The naming in a negotiable bill of lading of a person to be notified of the
01 arrival of the goods does not limit the negotiability of the bill or constitute notice to a 02 purchaser of the bill of an interest of that person in the goods. 03 * Sec. 63. AS 45.07.502 is amended to read: 04 Sec. 45.07.502. Rights acquired by due negotiation. (a) Subject to 05 AS 45.07.205 and 45.07.503 [AS 45.07.503 AND TO THE PROVISIONS OF 06 AS 45.07.205 ON FUNGIBLE GOODS], a holder to whom a negotiable document of 07 title has been duly negotiated acquires by the due negotiation 08 (1) title to the document; 09 (2) title to the goods; 10 (3) all rights accruing under the law of agency or estoppel, including 11 rights to goods delivered to the bailee after the document was issued; and 12 (4) the direct obligation of the issuer to hold or deliver the goods 13 according to the terms of the document free of a defense or claim by the issuer except 14 those [ONE] arising under the terms of the document or under this chapter, but, [;] in 15 the case of a delivery order, the bailee's obligation accrues only upon the bailee's 16 acceptance of the delivery order, and the obligation acquired by the holder is that the 17 issuer and any [AN] endorser will procure the acceptance of the bailee. 18 (b) Subject to AS 45.07.503, title and rights [SO] acquired by due negotiation 19 are not defeated by a stoppage of the goods represented by the document of title or by 20 surrender of the goods by the bailee [,] and are not impaired even if 21 (1) [THOUGH] the due negotiation or a prior due negotiation 22 constituted a breach of duty; 23 (2) [OR EVEN THOUGH] a person has been deprived of possession 24 of a negotiable tangible [THE] document or control of a negotiable electronic 25 document by misrepresentation, fraud, accident, mistake, duress, loss, theft, or 26 conversion; [,] or 27 (3) [EVEN THOUGH] a previous sale or other transfer of the goods or 28 document has been made to a third person. 29 * Sec. 64. AS 45.07.503 is amended to read: 30 Sec. 45.07.503. Document of title to goods defeated in certain cases. (a) A 31 document of title confers no right in goods against a person who, before issuance of
01 the document, had a legal interest or a perfected security interest in the goods 02 [THEM] and who did not [NEITHER] 03 (1) deliver [DELIVERED] or entrust the goods [ENTRUSTED 04 THEM] or a document of title covering the goods [THEM] to the bailor or the bailor's 05 nominee with 06 (A) actual or apparent authority to ship, store, or sell; 07 (B) [OR WITH] power to obtain delivery under AS 45.07.403; 08 or 09 (C) [WITH] power of disposition under AS 45.02.403, 10 AS 45.12.304(b), 45.12.305(b), AS 45.29.320, 45.29.321(c) [AS 45.02.403 11 AND AS 45.29.320] or other statute or rule of law; or [NOR] 12 (2) acquiesce [ACQUIESCED] in the procurement by the bailor or its 13 [THE BAILOR'S] nominee of a document [OF TITLE]. 14 (b) Title to goods based upon an unaccepted delivery order is subject to the 15 rights of a person [ANYONE] to whom a negotiable warehouse receipt or bill of 16 lading covering the goods has been duly negotiated. That [SUCH A] title may be 17 defeated under AS 45.07.504 to the same extent as the rights of the issuer or a 18 transferee from the issuer. 19 (c) Title to goods based upon a bill of lading issued to a freight forwarder is 20 subject to the rights of a person [ANYONE] to whom a bill issued by the freight 21 forwarder is duly negotiated. However, [; BUT] delivery by the carrier in accordance 22 with AS 45.07.401 - 45.07.404 under its own bill of lading discharges the carrier's 23 obligation to deliver. 24 * Sec. 65. AS 45.07.504 is amended to read: 25 Sec. 45.07.504. Rights acquired in [THE] absence of due negotiation; effect 26 of diversion; [SELLER'S] stoppage of delivery. (a) A transferee of a document of 27 title, whether negotiable or nonnegotiable [NOT], to whom the document has been 28 delivered but not duly negotiated, acquires the title and rights that the transferor had or 29 had actual authority to convey. 30 (b) In the case of a transfer of a nonnegotiable document of title, until, [(] but 31 not after, [)] the bailee receives notice [NOTIFICATION] of the transfer, the rights of
01 the transferee may be defeated 02 (1) by those creditors of the transferor who could treat the transfer 03 [SALE] as void under AS 45.02.402 or AS 45.12.308; 04 (2) by a buyer from the transferor in ordinary course of business if the 05 bailee has delivered the goods to the buyer or received notification of the buyer's 06 rights; [OR] 07 (3) by a lessee from the transferor in ordinary course of business if 08 the bailee has delivered the goods to the lessee or received notification of the 09 lessee's rights; or 10 (4) as against the bailee, by good faith dealings of the bailee with the 11 transferor. 12 (c) A diversion or other change of shipping instructions by the consignor in a 13 nonnegotiable bill of lading that causes the bailee not to deliver the goods to the 14 consignee defeats the consignee's title to the goods if the goods [THEY] have been 15 delivered to a buyer in ordinary course of business or a lessee in ordinary course of 16 business and, in any event, defeats the consignee's rights against the bailee. 17 (d) Delivery of the goods under a nonnegotiable document of title may be 18 stopped by a seller under AS 45.02.705 or a lessor under AS 45.12.526, [AND] 19 subject to the requirement of due notification [SET OUT] in those sections 20 [AS 45.02.705]. A bailee who honors [HONORING] the seller's or lessor's 21 instructions is entitled to be indemnified by the seller or lessor against a resulting loss 22 or expense. 23 * Sec. 66. AS 45.07.505 is amended to read: 24 Sec. 45.07.505. Endorser not [A] guarantor for other parties. The 25 endorsement of a tangible document of title issued by a bailee does not make the 26 endorser liable for a default by the bailee or [BY] previous endorsers. 27 * Sec. 67. AS 45.07.506 is amended to read: 28 Sec. 45.07.506. Delivery without endorsement; right to compel 29 endorsement. The transferee of a negotiable tangible document of title has a 30 specifically enforceable right to have its [THE] transferor supply a necessary 31 endorsement, but the transfer becomes a negotiation only as of the time the
01 endorsement is supplied. 02 * Sec. 68. AS 45.07.507 is amended to read: 03 Sec. 45.07.507. Warranties on negotiation or delivery [TRANSFER] of 04 document of title [RECEIPT OR BILL]. If a person negotiates or delivers 05 [TRANSFERS] a document of title for value, other [OTHERWISE] than as a mere 06 intermediary under AS 45.07.508, [THEN,] unless otherwise agreed, the transferor, 07 in addition to any warranty made in selling or leasing the goods, [PERSON] 08 warrants to its [THE] immediate purchaser only that [IN ADDITION TO ANY 09 WARRANTY MADE IN SELLING THE GOODS] 10 (1) [THAT] the document is genuine; 11 (2) [THAT] the transferor does not have [PERSON HAS NO] 12 knowledge of a fact that would impair the document's [ITS] validity or worth; and 13 (3) [THAT] the negotiation or delivery [TRANSFER] is rightful and 14 fully effective with respect to the title to the document and the goods it represents. 15 * Sec. 69. AS 45.07.508 is amended to read: 16 Sec. 45.07.508. Warranties of collecting bank as to documents of title. A 17 collecting bank or other intermediary known to be entrusted with documents of title 18 on behalf of another or with collection of a draft or other claim against delivery of 19 documents warrants by the delivery of the documents only its own good faith and 20 authority [. THIS RULE APPLIES] even if [THOUGH] the collecting bank or other 21 intermediary has purchased or made advances against the claim or draft to be 22 collected. 23 * Sec. 70. AS 45.07.509 is amended to read: 24 Sec. 45.07.509. Adequate [RECEIPT OR BILL: WHEN ADEQUATE] 25 compliance with commercial contract. Whether [THE QUESTION WHETHER] a 26 document of title is adequate to fulfill the obligations of a contract for sale or a 27 contract for lease or the conditions of a letter of credit is determined [GOVERNED] 28 by AS 45.02, [ON SALES AND] AS 45.05, or AS 45.12 [ON LETTERS OF 29 CREDIT]. 30 * Sec. 71. AS 45.07.601 is repealed and reenacted to read: 31 Sec. 45.07.601. Lost, stolen, or destroyed documents of title. (a) If a
01 document of title is lost, stolen, or destroyed, a court may order delivery of the goods 02 or issuance of a substitute document, and the bailee may, without liability to any 03 person, comply with the order. If the document was negotiable, a court may not order 04 delivery of the goods or issuance of a substitute document without the claimant's 05 posting security unless the court finds that any person who may suffer loss as a result 06 of nonsurrender of possession or control of the document is adequately protected 07 against the loss. If the document was nonnegotiable, the court may require security. 08 (b) A bailee who, without a court order, delivers goods to a person claiming 09 under a missing negotiable document of title is liable to a person injured by the 10 delivery. If the delivery is not in good faith, the bailee is liable for conversion. 11 Delivery in good faith is not conversion if the claimant posts security with the bailee 12 in an amount at least double the value of the goods at the time of posting to indemnify 13 a person injured by the delivery who files a notice of claim within one year after the 14 delivery. 15 * Sec. 72. AS 45.07.602 is amended to read: 16 Sec. 45.07.602. Judicial process against [ATTACHMENT OF] goods 17 covered by [A] negotiable document of title. Unless A [EXCEPT WHERE THE] 18 document of title was originally issued upon delivery of the goods by a person who 19 did not have [HAD NO] power to dispose of them, a [NO] lien does not attach 20 [ATTACHES] by virtue of a judicial process to goods in the possession of a bailee for 21 which a negotiable document of title is outstanding unless possession or control of 22 the document is first surrendered to the bailee or [ITS] negotiation of the document is 23 enjoined. The [, AND THE] bailee may not be compelled to deliver the goods under 24 process until possession or control of the document is surrendered to the bailee or to 25 [IMPOUNDED BY] the court. A purchaser of [ONE WHO PURCHASES] the 26 document for value without notice of the process or injunction takes free of the lien 27 imposed by judicial process. 28 * Sec. 73. AS 45.07.603 is amended to read: 29 Sec. 45.07.603. Conflicting claims; interpleader. If more than one person 30 claims title to or possession of the goods, the bailee is excused from delivery until the 31 bailee has [HAD] a reasonable time to ascertain the validity of the adverse claims or to
01 commence [BRING] an action for interpleader. The bailee [TO COMPEL ALL 02 CLAIMANTS TO INTERPLEAD AND] may assert an [COMPEL THIS] 03 interpleader [,] either in defending an action for nondelivery of the goods or by 04 original action [, WHICHEVER IS APPROPRIATE]. 05 * Sec. 74. AS 45.08.103 is amended by adding a new subsection to read: 06 (h) A document of title is not a financial asset unless AS 45.08.102(a)(10)(C) 07 applies. 08 * Sec. 75. AS 45.12.103(a)(1) is amended to read: 09 (1) "buyer in ordinary course of business" means a person who, in 10 good faith and without knowledge that the sale to that person is in violation of the 11 ownership rights or security interest or leasehold interest of a third party in the goods, 12 buys in ordinary course from a person in the business of selling goods of that kind, but 13 does not include a pawnbroker; "buying" may be for cash or by exchange of other 14 property or on secured or unsecured credit and includes acquiring [RECEIVING] 15 goods or documents of title under a preexisting contract for sale, but does not include 16 a transfer in bulk or as security for or in total or partial satisfaction of a money debt; 17 * Sec. 76. AS 45.12.103(a)(15) is amended to read: 18 (15) "lessee in ordinary course of business" means a person who, in 19 good faith and without knowledge that the lease to that person is in violation of the 20 ownership rights or security interest or leasehold interest of a third party in the goods, 21 leases in ordinary course from a person in the business of selling or leasing goods of 22 that kind, but does not include a pawnbroker; "leasing" may be for cash or by 23 exchange of other property or on secured or unsecured credit and includes acquiring 24 [RECEIVING] goods or documents of title under a preexisting lease contract, but does 25 not include a transfer in bulk or as security for or in total or partial satisfaction of a 26 money debt; 27 * Sec. 77. AS 45.12.304(b) is amended to read: 28 (b) A subsequent lessee in [THE] ordinary course of business from a lessor 29 who is a merchant dealing in goods of that kind to whom the goods were entrusted by 30 the existing lessee of that lessor before the interest of the subsequent lessee became 31 enforceable against that lessor obtains, to the extent of the leasehold interest
01 transferred, all of that lessor's and the existing lessee's rights to the goods, and takes 02 free of the existing lease contract. 03 * Sec. 78. AS 45.12.305(b) is amended to read: 04 (b) A buyer in [THE] ordinary course of business or a sublessee in [THE] 05 ordinary course of business from a lessee who is a merchant dealing in goods of that 06 kind to whom the goods were entrusted by the lessor obtains, to the extent of the 07 interest transferred, all of the lessor's and lessee's rights to the goods, and takes free of 08 the existing lease contract. 09 * Sec. 79. AS 45.12.310(d) is amended to read: 10 (d) The interest of a lessor or a lessee under a lease contract described in (b) or 11 (c) of this section is subordinate to the interest of 12 (1) a buyer in [THE] ordinary course of business or a lessee in [THE] 13 ordinary course of business of an [ANY] interest in the whole acquired after the goods 14 became accessions; or 15 (2) a creditor with a security interest in the whole perfected before the 16 lease contract was made to the extent that the creditor makes subsequent advances 17 without knowledge of the lease contract. 18 * Sec. 80. AS 45.12.501(d) is amended to read: 19 (d) Except as otherwise provided in AS 45.01.305(a) [AS 45.01.106(a)] or this 20 chapter or the lease agreement, the rights and remedies referred to in (b) and (c) of this 21 section are cumulative. 22 * Sec. 81. AS 45.12.514(b) is amended to read: 23 (b) A lessee's failure to reserve rights when paying rent or other consideration 24 against documents precludes recovery of the payment for defects apparent in [ON 25 THE FACE OF] the documents. 26 * Sec. 82. AS 45.12.518(b) is amended to read: 27 (b) Except as otherwise provided under AS 45.12.504 with respect to damages 28 liquidated in the lease agreement or otherwise determined under agreement of the 29 parties under AS 45.01.302 [AS 45.01.102(c)] and AS 45.12.503, if a lessee's cover is 30 by lease agreement substantially similar to the original lease agreement and the new 31 lease agreement is made in good faith and in a commercially reasonable manner, the
01 lessee may recover from the lessor as damages 02 (1) the present value, as of the date of the commencement of the term 03 of the new lease agreement, of the rent under the new lease agreement applicable to 04 that period of the new lease term that is comparable to the then remaining term of the 05 original lease agreement minus the present value as of the same date of the total rent 06 for the then remaining lease term of the original lease agreement; and 07 (2) incidental or consequential damages, less expenses saved in 08 consequence of the lessor's default. 09 * Sec. 83. AS 45.12.519(a) is amended to read: 10 (a) Except as otherwise provided under AS 45.12.504 with respect to damages 11 liquidated in the lease agreement or otherwise determined under agreement of the 12 parties under AS 45.01.302 [AS 45.01.102(c)] and AS 45.12.503, if a lessee elects not 13 to cover or a lessee elects to cover and the cover is by lease agreement that for any 14 reason does not qualify for treatment under AS 45.12.518(b), or is by purchase or 15 otherwise, the measure of damages for nondelivery or repudiation by the lessor or for 16 rejection or revocation of acceptance by the lessee is the present value, as of the date 17 of the default, of the then market rent minus the present value as of the same date of 18 the original rent, computed for the remaining lease term of the original lease 19 agreement, together with incidental and consequential damages, less expenses saved in 20 consequence of the lessor's default. 21 * Sec. 84. AS 45.12.526(b) is amended to read: 22 (b) In pursuing its remedies under (a) of this section, the lessor may stop 23 delivery until 24 (1) receipt of the goods by the lessee; 25 (2) acknowledgment to the lessee by a bailee of the goods, except a 26 carrier, that the bailee holds the goods for the lessee; or 27 (3) [SUCH] an acknowledgment to the lessee under (1) or (2) of this 28 subsection by a carrier by [VIA] reshipment or as a warehouse 29 [WAREHOUSEMAN]. 30 * Sec. 85. AS 45.12.527(b) is amended to read: 31 (b) Except as otherwise provided with respect to damages liquidated in the
01 lease agreement under AS 45.12.504 or otherwise determined under agreement of the 02 parties under AS 45.01.302 [AS 45.01.102(c)] and AS 45.12.503, if the disposition is 03 by lease agreement substantially similar to the original lease agreement and the new 04 lease agreement is made in good faith and in a commercially reasonable manner, the 05 lessor may recover from the lessee as damages 06 (1) accrued and unpaid rent as of the date of the commencement of the 07 term of the new lease agreement; 08 (2) the present value, as of the same date, of the total rent for the then 09 remaining lease term of the original lease agreement minus the present value, as of the 10 same date, of the rent under the new lease agreement applicable to that period of the 11 new lease term that is comparable to the then remaining term of the original lease 12 agreement; and 13 (3) [ANY] incidental damages allowed under AS 45.12.530, less 14 expenses saved in consequence of the lessee's default. 15 * Sec. 86. AS 45.12.528(a) is amended to read: 16 (a) Except as otherwise provided with respect to damages liquidated in the 17 lease agreement under AS 45.12.504 or otherwise determined under agreement of the 18 parties under AS 45.01.302 [AS 45.01.102(c)] and AS 45.12.503, if a lessor elects to 19 retain the goods or a lessor elects to dispose of the goods and the disposition is by 20 lease agreement that for any reason does not qualify for treatment under 21 AS 45.12.527(b), or is by sale or otherwise, the lessor may recover from the lessee as 22 damages for a default described in AS 45.12.523(a) or (c)(1), or, if agreed, for other 23 default of the lessee 24 (1) accrued and unpaid rent as of the date of default if the lessee has 25 never taken possession of the goods, or, if the lessee has taken possession of the 26 goods, as of the date the lessor repossesses the goods or an earlier date on which the 27 lessee makes a tender of the goods to the lessor; 28 (2) the present value as of the date determined under (1) of this 29 subsection of the total rent for the then remaining lease term of the original lease 30 agreement minus the present value as of the same date of the market rent at the place 31 where the goods are located, computed for the same lease term; and
01 (3) [ANY] incidental damages allowed under AS 45.12.530, less 02 expenses saved in consequence of the lessee's default. 03 * Sec. 87. AS 45.14.105(a)(7) is amended to read: 04 (7) "prove," with respect to a fact, means to meet the burden of 05 establishing the fact; "burden of establishing" has the meaning given in AS 45.01.211 06 [AS 45.01.201]. 07 * Sec. 88. AS 45.14.106(a) is amended to read: 08 (a) The time of receipt of a payment order or communication canceling or 09 amending a payment order is determined by the rules applicable to receipt of a notice 10 stated in AS 45.01.212 [AS 45.01.201(27)]. A receiving bank may fix a cut-off time or 11 times on a funds-transfer business day for the receipt and processing of payment 12 orders and communications cancelling [CANCELING] or amending payment orders. 13 Different cut-off times may apply to payment orders, cancellations, or amendments, or 14 to different categories of payment orders, cancellations, or amendments. A cut-off 15 time may apply to senders generally, or different cut-off times may apply to different 16 senders or categories of payment orders. If a payment order or communication 17 cancelling [CANCELING] or amending a payment order is received after the close of 18 a funds-transfer business day or after the appropriate cut-off time on a funds-transfer 19 business day, the receiving bank may treat the payment order or communication as 20 received at the opening of the next funds-transfer business day. 21 * Sec. 89. AS 45.14.204(b) is amended to read: 22 (b) Reasonable time under (a) of this section may be fixed by agreement as 23 stated in AS 45.01.302(b) [AS 45.01.204(a)], but the obligation of a receiving bank to 24 refund payment as stated in (a) of this section may not otherwise be varied by 25 agreement. 26 * Sec. 90. AS 45.29.102(a)(59) is amended to read: 27 (59) "issuer," with respect to a 28 (A) letter of credit or letter-of-credit right, has the meaning 29 given in AS 45.05.102(a); 30 (B) security, has the meaning given in AS 45.08.201; 31 (C) document of title, has the meaning given in
01 AS 45.07.112; 02 * Sec. 91. AS 45.29.102(a) is amended by adding a new paragraph to read: 03 (104) "control" has the meaning given in AS 45.07.116. 04 * Sec. 92. AS 45.29.203(b) is amended to read: 05 (b) Except as otherwise provided in (c) - (i) of this section, a security interest 06 is enforceable against the debtor and third parties with respect to the collateral only if 07 (1) value has been given; 08 (2) the debtor has rights in the collateral or the power to transfer rights 09 in the collateral to a secured party; and 10 (3) one of the following conditions is met: 11 (A) the debtor has authenticated a security agreement that 12 provides a description of the collateral and, if the security interest covers 13 timber to be cut, a description of the land concerned; 14 (B) the collateral is not a certificated security and is in the 15 possession of the secured party under AS 45.29.313 under the debtor's security 16 agreement; 17 (C) the collateral is a certificated security in registered form, 18 and the security certificate has been delivered to the secured party under 19 AS 45.08.301 under the debtor's security agreement; or 20 (D) the collateral is deposit accounts, electronic chattel paper, 21 investment property, [OR] letter-of-credit rights, or electronic documents, 22 and the secured party has control under AS 45.07.116, AS 45.29.104, 23 45.29.105, 45.29.106, or 45.29.107 under the debtor's security agreement. 24 * Sec. 93. AS 45.29.207(c) is amended to read: 25 (c) Except as otherwise provided in (d) of this section, a secured party having 26 possession of collateral or control of collateral under AS 45.07.116, AS 45.29.104, 27 45.29.105, 45.29.106, or 45.29.107 28 (1) may hold as additional security any proceeds, except money or 29 funds, received from the collateral; 30 (2) shall apply money or funds received from the collateral to reduce 31 the secured obligation unless remitted to the debtor; and
01 (3) may create a security interest in the collateral. 02 * Sec. 94. AS 45.29.208(b) is amended to read: 03 (b) Within 10 days after receiving an authenticated demand by the debtor, a 04 secured party 05 (1) having control of a deposit account under AS 45.29.104(a)(2) shall 06 send to the bank with which the deposit account is maintained an authenticated 07 statement that releases the bank from further obligation to comply with instructions 08 originated by the secured party; 09 (2) having control of a deposit account under AS 45.29.104(a)(3) shall 10 (A) pay the debtor the balance on deposit in the deposit 11 account; or 12 (B) transfer the balance on deposit into a deposit account in the 13 debtor's name; 14 (3) other than a buyer, having control of electronic chattel paper under 15 AS 45.29.105 shall 16 (A) communicate the authoritative copy of the electronic 17 chattel paper to the debtor or its designated custodian; 18 (B) if the debtor designates a custodian that is the designated 19 custodian with which the authoritative copy of the electronic chattel paper is 20 maintained for the secured party, communicate to the custodian an 21 authenticated record releasing the designated custodian from further obligation 22 to comply with instructions originated by the secured party and instructing the 23 custodian to comply with instructions originated by the debtor; and 24 (C) take appropriate action to enable the debtor or its 25 designated custodian to make copies of or revisions to the authoritative copy 26 that add or change an identified assignee of the authoritative copy without the 27 consent of the secured party; 28 (4) having control of investment property under AS 45.08.106(d)(2) or 29 AS 45.29.106(b) shall send to the securities intermediary or commodity intermediary 30 with which the security entitlement or commodity contract is maintained an 31 authenticated record that releases the securities intermediary or commodity
01 intermediary from further obligation to comply with entitlement orders or directions 02 originated by the secured party; [AND] 03 (5) having control of a letter-of-credit right under AS 45.29.107 shall 04 send to each person having an unfulfilled obligation to pay or deliver proceeds of the 05 letter of credit to the secured party an authenticated release from further obligation to 06 pay or deliver proceeds of the letter of credit to the secured party; and 07 (6) having control of an electronic document shall 08 (A) give control of the electronic document to the debtor or 09 its designated custodian; 10 (B) if the debtor designates a custodian who is the 11 designated custodian with whom the authoritative copy of the electronic 12 document is maintained for the secured party, communicate to the 13 custodian an authenticated record releasing the designated custodian from 14 further obligation to comply with instructions originated by the secured 15 party and instructing the custodian to comply with instructions originated 16 by the debtor; and 17 (C) take appropriate action to enable the debtor or its 18 designated custodian to make copies of or revisions to the authoritative 19 copy that add or change an identified assignee of the authoritative copy 20 without the consent of the secured party. 21 * Sec. 95. AS 45.29.301 is amended to read: 22 Sec. 45.29.301. Law governing perfection and priority of security interests. 23 Except as otherwise provided in AS 45.29.303 - 45.29.306, the following rules 24 determine the law governing perfection, the effect of perfection or nonperfection, and 25 the priority of a security interest in collateral: 26 (1) except as otherwise provided in this section, while a debtor is 27 located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect 28 of perfection or nonperfection, and the priority of a security interest in collateral; 29 (2) while collateral is located in a jurisdiction, the local law of that 30 jurisdiction governs perfection, the effect of perfection or nonperfection, and the 31 priority of a possessory security interest in that collateral;
01 (3) except as otherwise provided in (4) of this section, while tangible 02 negotiable documents, goods, instruments, money, or tangible chattel paper is located 03 in a jurisdiction, the local law of that jurisdiction governs 04 (A) perfection of a security interest in the goods by filing a 05 fixture filing; 06 (B) perfection of a security interest in timber to be cut; and 07 (C) the effect of perfection or nonperfection and the priority of 08 a nonpossessory security interest in the collateral; 09 (4) the local law of the jurisdiction in which the wellhead or minehead 10 is located governs perfection, the effect of perfection or nonperfection, and the priority 11 of a security interest in as-extracted collateral. 12 * Sec. 96. AS 45.29.310(b) is amended to read: 13 (b) The filing of a financing statement is not necessary to perfect a security 14 interest 15 (1) that is perfected under AS 45.29.308(d), (e), (f), or (g); 16 (2) that is perfected under AS 45.29.309 when it attaches; 17 (3) in property subject to a statute, regulation, or treaty described in 18 AS 45.29.311(a); 19 (4) in goods in possession of a bailee that is perfected under 20 AS 45.29.312(d)(1) or (2); 21 (5) in certificated securities, documents, goods, or instruments that is 22 perfected without filing, control, or possession under AS 45.29.312(e), (f), or (g); 23 (6) in collateral in the secured party's possession under AS 45.29.313; 24 (7) in a certificated security that is perfected by delivery of the security 25 certificate to the secured party under AS 45.29.313; 26 (8) in deposit accounts, electronic chattel paper, electronic 27 documents, investment property, or letter-of-credit rights that is perfected by control 28 under AS 45.29.314; 29 (9) in proceeds that is perfected under AS 45.29.315; or 30 (10) that is perfected under AS 45.29.316. 31 * Sec. 97. AS 45.29.312(e) is amended to read:
01 (e) A security interest in certificated securities, negotiable documents, or 02 instruments is perfected without filing or the taking of possession or control for a 03 period of 20 days from the time the security interest attaches to the extent that it arises 04 for new value given under an authenticated security agreement. 05 * Sec. 98. AS 45.29.313(a) is amended to read: 06 (a) Except as otherwise provided in (b) of this section, a secured party may 07 perfect a security interest in tangible negotiable documents, goods, instruments, 08 money, or tangible chattel paper by taking possession of the collateral. A secured party 09 may perfect a security interest in certificated securities by taking delivery of the 10 certificated securities under AS 45.08.301. 11 * Sec. 99. AS 45.29.314(a) is amended to read: 12 (a) A security interest in deposit accounts, electronic chattel paper, investment 13 property, [OR] letter-of-credit rights, or electronic documents may be perfected by 14 control of the collateral under AS 45.07.116, AS 45.29.104, 45.29.105, 45.29.106, or 15 45.29.107. 16 * Sec. 100. AS 45.29.314(b) is amended to read: 17 (b) A security interest in deposit accounts, electronic chattel paper, [OR] 18 letter-of-credit rights, or electronic documents is perfected by control under 19 AS 45.07.116, AS 45.29.104, 45.29.105, or 45.29.107 when the secured party obtains 20 control and remains perfected by control only while the secured party retains control. 21 * Sec. 101. AS 45.29.317(b) is amended to read: 22 (b) Except as otherwise provided in (e) of this section, a buyer, other than a 23 secured party, of tangible chattel paper, tangible documents, goods, instruments, or a 24 security certificate takes free of a security interest or agricultural lien if the buyer 25 gives value and receives delivery of the collateral without knowledge of the security 26 interest or agricultural lien and before it is perfected. 27 * Sec. 102. AS 45.29.317(d) is amended to read: 28 (d) A licensee of a general intangible or a buyer, other than a secured party, of 29 accounts, electronic chattel paper, electronic documents, general intangibles, or 30 investment property other than a certificated security takes free of a security interest if 31 the licensee or buyer gives value without knowledge of the security interest and before
01 it is perfected. 02 * Sec. 103. AS 45.29.338 is amended to read: 03 Sec. 45.29.338. Priority of security interest or agricultural lien perfected 04 by filed financing statement providing certain incorrect information. If a security 05 interest or agricultural lien is perfected by a filed financing statement providing 06 information described in AS 45.29.516(b)(5) that is incorrect at the time the financing 07 statement is filed, 08 (1) the security interest or agricultural lien is subordinate to a 09 conflicting perfected security interest in the collateral to the extent that the holder of 10 the conflicting security interest gives value in reasonable reliance upon the incorrect 11 information; and 12 (2) a purchaser, other than a secured party, of the collateral takes free 13 of the security interest or agricultural lien to the extent that, in reasonable reliance 14 upon the incorrect information, the purchaser gives value and, in the case of tangible 15 chattel paper, tangible documents, goods, instruments, or a security certificate, 16 receives delivery of the collateral. 17 * Sec. 104. AS 45.29.601(b) is amended to read: 18 (b) A secured party in possession of collateral or control of collateral under 19 AS 45.07.116, AS 45.29.104, 45.29.105, 45.29.106, or 45.29.107 has the rights and 20 duties provided in AS 45.29.207. 21 * Sec. 105. AS 45.35.099(4) is amended to read: 22 (4) "lease-purchase agreement" 23 (A) means an agreement for the use of personal property 24 primarily for personal, family, or household purposes if the agreement is for an 25 initial period of four months or less, is automatically renewable with each 26 payment after the initial period, does not obligate or require the consumer to 27 continue leasing or using the property beyond the initial period, and permits 28 the consumer to become the owner of the property; 29 (B) does not include 30 (i) an agreement primarily for commercial or 31 agricultural purposes;
01 (ii) a lease or bailment of personal property if the lease 02 or bailment is incidental to the lease of real property and provides that 03 the consumer does not have an option to purchase the leased personal 04 property; 05 (iii) a lease of a motor vehicle; 06 (iv) a security interest as defined under AS 45.01.211 07 [AS 45.01.201]; 08 (v) a retail installment transaction under AS 45.10; 09 (vi) a lease under AS 45.12; 10 * Sec. 106. AS 45.65.250(4) is amended to read: 11 (4) "creditor" has the meaning given in AS 45.01.211 [AS 45.01.201]; 12 * Sec. 107. AS 45.01.101, 45.01.102, 45.01.103, 45.01.104, 45.01.105, 45.01.106, 13 45.01.107, 45.01.108, 45.01.109, 45.01.201, 45.01.202, 45.01.203, 45.01.204, 45.01.205, 14 45.01.206, 45.01.207, 45.01.208; AS 45.02.103(a)(2), 45.02.208; AS 45.03.103(a)(4); 15 AS 45.04.104(c)(7); AS 45.07.101, 45.07.102, 45.07.103, 45.07.104, 45.07.105, 45.07.403(d), 16 45.07.650; AS 45.08.102(a)(11); AS 45.12.103(c)(9), 45.12.207; AS 45.14.105(a)(6); and 17 AS 45.29.102(a)(51) are repealed. 18 * Sec. 108. The uncodified law of the State of Alaska is amended by adding a new section 19 to read: 20 INDIRECT COURT RULE CHANGES. (a) The provisions of AS 45.01.303(g), 21 enacted by sec. 4 of this Act, have the effect of amending Rule 403, Alaska Rules of 22 Evidence, by requiring the exclusion of certain relevant evidence relating to usage of trade 23 unless certain conditions are met. 24 (b) The provisions of AS 45.01.307, enacted by sec. 4 of this Act, have the effect of 25 amending Rule 902, Alaska Rules of Evidence, by establishing the authenticity and stated 26 facts of certain documents. 27 * Sec. 109. The uncodified law of the State of Alaska is amended by adding a new section 28 to read: 29 APPLICABILITY. (a) This Act applies to a document of title that is issued or a 30 bailment that arises on or after the effective date of this Act. This Act does not apply to a 31 document of title that is issued or a bailment that arises before the effective date of this Act
01 even if the document of title or bailment would be subject to this Act if the document of title 02 was issued or the bailment arose on or after the effective date of this Act. 03 (b) This Act does not apply to a right of action that has accrued before the effective 04 date of this Act. 05 * Sec. 110. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 SAVING CLAUSE. A document of title issued or a bailment that arises before the 08 effective date of this Act and the rights, obligations, and interests flowing from that document 09 or bailment are governed by a statute amended or repealed by this Act as if the amendment or 10 repeal had not occurred and may be terminated, completed, consummated, or enforced under 11 that statute. 12 * Sec. 111. The uncodified law of the State of Alaska is amended by adding a new section 13 to read: 14 REVISOR'S INSTRUCTIONS. The revisor of statutes is instructed to change the 15 catch line of 16 (1) AS 45.07.210 from "Enforcement of warehouseman's lien" to 17 "Enforcement of warehouse's lien"; and 18 (2) AS 45.07.403 from "Obligation of warehouseman or carrier to deliver; 19 excuse" to "Obligation of bailee to deliver; excuse." 20 * Sec. 112. The uncodified law of the State of Alaska is amended by adding a new section 21 to read: 22 CONDITIONAL EFFECT. AS 45.01.303(g), enacted by sec. 4 of this Act, and 23 AS 45.01.307, enacted by sec. 4 of this Act, take effect only if sec. 108 of this Act receives 24 the two-thirds majority vote of each house required by art. IV, sec. 15, Constitution of the 25 State of Alaska. 26 * Sec. 113. This Act takes effect January 1, 2010.