Bulletin: AK000007

Date:
December 01, 1990
To:
All Alaska Agents
RE:
Alaska Statutes - 1990 Session Laws

Dear Associates:

Listed below are summaries of laws enacted at the 1990 Regular and First Special Sessions of the 16th State Legislature that might impact title insurers.

Please do not hesitate to call if you have questions or comments on this material.

Alaska Uniform Transfers to Minors Act (Chapter 11)
Effective January 1, 1991

This chapter establishes procedures for the transfer of property to custodians for the benefit of minors.

This act can apply when, at the time the property is transferred, either the transferor, the minor, or the custodian is a resident of Alaska or the property is located there, and is not affected by a subsequent change in residence of the transferor, minor, or custodian.

The custodianship is created and property transferred subject to it when "an interest in real property is recorded in the name of the transferor, and adult other than the transferor, or a trust company" followed by words in substantially the form "as custodian for (name of minor) under the Alaska Uniform Transfers to Minors Act." The transfer may be make for only one minor at a time, and there may be only one custodian at a time for that minor.

A transfer under the provisions of this chapter is irrevocable, vesting the custodial property ?indefeasibly? in the minor, but the custodian has "all the rights, powers, duties and authority" over the custodian has "all the rights, powers, duties and authority" over the custodial property "that unmarried adult owners have over their own property, provided that a custodian may exercise those rights, powers and authority in the custodial capacity only."

In exercising those rights a custodian "may deliver or pay to the minor or expend for the minors benefit as much of the custodial property as the custodian considers advisable for the use and benefit of the minor."

Unless the instrument establishing the custodial property states otherwise, as provided for under this Chapter, the custodial property must be transferred to the minor when he or she reaches 21 years of age. If the instrument does specify an age that age "may not be earlier than the time the minor attains 18 years of age or later than the time the minor attains 25 years of age".

Amendment Of District Court Jurisdiction (Chapter 89)
Effective September 2, 1990

AS 22.15.030(a) has been amended by this chapter to provide, among other things, that a district court now has jurisdiction of civil cases:

";for the recovery of money or damages when the amount claimed exclusive of costs, interest and attorney fees does not exceed $50,000,00" (from $35,000.00);

"for the recovery of a penalty or forfeiture, whether given by statute or arising out of contract, not exceeding $50,000.00" (from $35,000.00); and

"for the foreclosure of a lien when the amount in controversy does not exceed $50,000.00" (from $35,000.00).

Uniform common interest ownership act-exempt property (Chapter 104)
Effective September 12, 1990.

This chapter amends the provision in the act requiring a public offering statement and a resale certificate to be prepared or delivered when property subject to the act is sold by providing for an additional exemption in the "disposition of property by a nonprofit development Corporation if that corporation is eligible for assistance from the Neighborhood Reinvestment Corporation organized under 42 U.S.C. 8101 - 42 U.S.C. 8107 (Neighborhood reinvestment Corporation Act) for neighborhood housing services, neighborhood revitalization, and economic development projects in a community".

Amendment to Provide for Limited Partnership Derivative Actions (Chapter 155)
Effective September 19, 1990

AS 32.10 is amended to provide a limited partner the ability to bring an action on behalf of the limited partnership to recover a judgment in favor of the partnership if "general partners with the authority to bring the action have refused to bring the action or if, an effort to cause the general partners to bring the action is not likely to succeed".

In order to bring such an action, the limited partner must be a partner at the time the action is brought and

"(1) must have been a partner at the time of the transaction of which the plaintiff is complaining; or

(2) the plaintiff's status as a partner must have devolved upon the plaintiff by operation of law or under the terms of the partnership agreement from a person who was a partner at the time of the transaction."

The complaint must indicate the reason or reasons that the limited partner feels compelled to bring the suit (in lieu of the general partner).

Easements within State Parks or Recreational Facilities (Chapter 172)
Effective September 19, 1990

AS 41.21.020 was amended by this chapter by adding a new subsection to read:

"(c) The department "(Department of Natural Resources)" may grant a public easement or public right of way within a state park unit for access to private property if the commissioner determines that the easement or right of way

(1) will not unduly affect park resources; and

(2) is in the public interest

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
11.10 Legislation
Exceptions Manual:
AK Corporations
 
AK Minors
 
AK Partnerships
Forms:
None