Section 45.29.604. Procedure if security agreement covers real property or fixtures.

   (a) If a security agreement covers both personal and real property, a secured party may proceed
        (1) under AS 45.29.601 - 45.29.628 as to the personal property without prejudicing any rights with respect to the real property; or
        (2) as to both the personal property and the real property in accordance with the rights with respect to the real property, in which case the other provisions of AS 45.29.601 - 45.29.628 do not apply.
   (b) Subject to (c) of this section, if a security agreement covers goods that are or become fixtures, a secured party may proceed
        (1) under AS 45.29.601 - 45.29.628; or
        (2) in accordance with the rights with respect to real property, in which case the other provisions of AS 45.29.601 - 45.29.628 do not apply.
   (c) Subject to the other provisions of AS 45.29.601 - 45.29.628, if a secured party holding a security interest in fixtures has priority over all owners and encumbrancers of the real property, the secured party, after default, may remove the collateral from the real property.
   (d) A secured party that removes collateral shall promptly reimburse an encumbrancer or owner of the real property, other than the debtor, for the cost of repair of physical injury caused by the removal. The secured party need not reimburse the encumbrancer or owner for diminution in value of the real property caused by the absence of the goods removed or by the necessity of replacing them. A person entitled to reimbursement may refuse permission to remove until the secured party gives adequate assurance for the performance of the obligation to reimburse.

Authorities

45.29.109

Notes

References

AS 45.29.109 Scope.

History

(Sec. 1 ch 113 SLA 2000)