Section 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) 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 provision stating that (1) if the security assignee takes possession or control of the subject lease, permit, or concession that is subject to the security assignment, either directly or through a sub-tenant, by foreclosure or otherwise, under the security assignment, A the security assignee accepts responsibility for all of the assignor's obligations under the lease, permit, or concession, including environmental liability and responsibility, commencing as of the date the security assignee succeds to the assigner's interest under the lease permit or concession; and (B) except as provided in (3) of this subsection, those obligations terminate as to the security assignee upon further transfer of the lease, permit, or concession by the security assignee; (2) the security assignee has an affirmative duty to notify the airport in writing upon the reconveyance or release of the security interest; and(3) unless the security assignee participates in management of the airport tenant, the security assignee does not have environmental liability or responsibility for a the period pre-dating the time when it took possesion of control of the lease, permit or concession; in this paragraph, "participates in management" has the meaning given in 42 U.S.C. 9601(20)(F); the security assignee does not have environmental liability or responsibility following a subsequent transfer of its entire interest in the lease, permit, or concession unless, by its direct actions, negligence, or failure to use due care, the security assignee (A) caused or contributed to a violation of any of the lease, permit or concession terms relating to environmental law or hazardous substances;(B) violated 17 AAC 42.045 or 17 AAC 42.050;(C) caused or contributed to actual financial damages to the airport due to a security assignee's breach of any environmental law.(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 lessee's, permitee's, or concessionaire's obligations under the lease, permit, or concession, including environmental liability and responsibility.(f) If a lease, permit, or concession conflicts with an assignment for security purposes of an interest in the lease, permit, or concession, the terms of the lease, permit, or concession control. A provision stating this priority must be included in each assignment for security purposes, but is implied in all assignments for security purposes whether stated or not.(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. (h) An assignment for security purposes under this section may be reassigned to another holder only upon consent of the airport manager under 17 AAC 42.275Eff. 1/14/2001, Register 157; am 1/17/2016, Register 217, April 2016; am 5/25/2017,Register 222, July 2017 Authority:AS 02.15.020
AS 02.15.060
AS 02.15.090