Made available by Touch N' Go Systems, Inc., and the
Law Offices of James B. Gottstein.

You can also go to The Alaska Legal Resource Center or search the entire website search.

Touch N' Go, the DeskTop In-and-Out Board makes your office run smoother. Visit Touch N' Go's Website to see how.
Title 3 . Commerce, Community, and Economic Development
Chapter 20 . Land Sales
Section 330. Blanket encumbrances - Trust and escrow accounts

3 AAC 20.330. Blanket encumbrances - Trust and escrow accounts

(a) If the encumbering instrument does not contain adequate release clauses, the lien, mortgage, or other encumbrances will be considered objectionable unless adequate reserves are maintained in a trust or escrow account. In determining the adequacy of the account, the department will be guided by the facts and circumstances of each individual case, but the account must comply with the following:

(1) funds shall be kept and maintained in an account separate and apart from the developer's personal funds;

(2) the account shall be established in a bank or trust company doing business in this state, or another state where the account is required to be maintained there by the laws of that state and approved by the department;

(3) statements shall be furnished to the department on a semiannual basis;

(4) the trust or escrow agreement shall state that its purpose is to protect the purchaser or prospective purchaser in case of default on a lien, mortgage or other encumbrance, and shall authorize the department to inspect the records of the trustee relating to the agreement, and that upon order of the department, or a court, the trustee shall release and pay over the funds to the department, or the holder of the blanket encumbrance.

(b) The department will execute an acknowledgment on the face of each agreement. This acknowledgment indicates approval of the form and content of the agreement, but will not make the department a party to the agreement.

History: Eff. 4/3/76, Register 58

Authority: AS 34.55.010 (a)

AS 34.55.020


Note to HTML Version:

The Alaska Administrative Code was automatically converted to HTML from a plain text format. Every effort has been made to ensure its accuracy, but neither Touch N' Go Systems nor the Law Offices of James B. Gottstein can be held responsible for any possible errors. This version of the Alaska Administrative Code is current through June, 2006.

If it is critical that the precise terms of the Alaska Administrative Code be known, it is recommended that more formal sources be consulted. Recent editions of the Alaska Administrative Journal may be obtained from the Alaska Lieutenant Governor's Office on the world wide web. If any errors are found, please e-mail Touch N' Go systems at E-mail. We hope you find this information useful. Copyright 2006. Touch N' Go Systems, Inc. All Rights Reserved.

Last modified 7/05/2006