00                            HOUSE BILL NO. 251                                                                          
01 "An Act relating to liens on vehicles; and providing for an effective date."                                            
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 28.10.391(a) is amended to read:                                                                   
04            (a)  The filing of the application and documents under AS 28.10.381 and the                                  
05       issuance of a new certificate of title are constructive notice of any liens or                                    
06       encumbrances against the vehicle described in the certificate to a creditor of the                                
07       owner, or to a subsequent purchaser or encumbrancer. However, a mortgage,                                     
08       conditional sale contract, or similar lien or encumbrance is subordinate to a lien                            
09       under AS 28.10.502 and is subject to the procedure provided in that section. A                                
10       [A] lien or encumbrance on a vehicle for labor, material, transportation, storage, or                             
11       similar activity, other than a lien under AS 28.10.502, whether or not dependent on                           
12       possession for its validity, is subordinate only to a mortgage, conditional sale contract,                        
13       or similar lien or encumbrance properly filed on or before the time that the vehicle is                           
14       subject to, or comes into possession of, the lien or encumbrance claimant for the labor,                          
15       material, transportation, storage, or similar activity.                                                           

01    * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).