Title 17 . Transportation and Public Facilities

Chapter 42 . Miscellaneous Provisions

Section 265. Assignment for security purposes

17 AAC 42.265. Assignment for security purposes

(a) This section applies to an assignment of an interest in a lease, permit, or concession for security purposes.

(b) Unless the lease, permit, or concession expressly provides otherwise, a lessee, permittee, or concessionaire may not assign for security purposes all or a portion of or any interest in a lease, permit, or concession, including improvements, without the prior written consent of the airport manager under 17 AAC 42.275. An assignment for security purposes made contrary to the requirements of this section and 17 AAC 42.275 is void.

(c) A request for consent to an assignment for security purposes must be submitted to the airport manager in writing and must include

(1) the name, address, and telephone contact number for the proposed assignee;

(2) three originals of the executed assignment documents with notarized signatures of the assignor and proposed assignee; and

(3) at least one copy of any deed of trust, promissory note, or other document that is a part of the security assignment transaction.

(d) A security assignment document must include a provision stating that, if the security assignee takes possession or control of the subject lease, permit, or concession, either directly or through a sub-tenant, by foreclosure or otherwise, under the security assignment, the assignee accepts responsibility for all of the assignor's obligations under the lease, permit, or concession, including environmental liability and responsibility, except that a security assignee has no affirmative duty or obligation under a lease unless the security assignee takes possession or control of the leasehold.

(e) Exercise by a security assignee of a power of sale or further assignment under a security assignment is subject to the consent of the airport manager under 17 AAC 42.275 with respect to any purchaser or assignee and shall be conditioned upon the purchaser or assignee accepting responsibility for all of the assignor's obligations under the lease, permit, or concession, including environmental liability and responsibility.

(f) In the event of a conflict between a lease, permit, or concession and an assignment of an interest in the lease, permit, or concession for security purposes, the terms of the lease, permit, or concession control.

(g) A lessee, permittee, or concessionaire may request that the airport manager informally review a proposed assignment for security purposes before the assignment documents are executed. However, an assignment of a lease, permit, or concession for security purposes is effective only if the manager consents to the assignment in writing under 17 AAC 42.275 after receiving a written request submitted under (c) of this section.

History: Eff. 1/14/2001, Register 157

Authority: AS 02.15.020

AS 02.15.060

AS 02.15.090