AS Title 34, Chapter 20: Mortgages and Trust Deeds

Article 1. Mortgages. Chapter 20. Mortgages and Trust Deeds. Sec. 34.20.010. Recording assignment of mortgage. The recording of the assignment of a mortgage is not in itself considered notice of the assignment to the mortgagor or the heirs or personal representatives of the mortgagor, so as to invalidate a payment made by one or more of them to the mortgagee. Sec. 34.20.020. Discharge of mortgage by entry in margin of record. [Repealed, § 43 ch 161 SLA 1988.] Sec. 34.20.030. Recording of discharge upon certificate of mortgagee. A mortgage may be discharged upon the record of the mortgage by the recorder who has custody of the record when there is presented to the recorder a certificate executed by the mortgagee or the personal representatives or assigns of the mortgagee, acknowledged or proved and certified in the manner prescribed in AS 34.15 to entitle conveyances to be recorded, specifying that the mortgage is paid or otherwise satisfied or discharged. Sec. 34.20.040. Recording certificate. A certificate of discharge provided for in AS 34.20.030 and the proof or acknowledgment of the certificate shall be recorded at full length. A reference shall be made to the book and page containing the record of the certificate or the serial number of the record of the certificate in the entry of the discharge of the mortgage made by the recorder upon the record of the discharge. Sec. 34.20.050. Penalty for failure to discharge mortgage or execute certificate. If a mortgagee, or personal representatives, successors in interest or assigns of the mortgagee, after full performance of the condition of the mortgage, whether before or after a breach, for 10 days after being so requested in writing, and after tender of the reasonable charges, neglects or refuses to discharge the mortgage, or to execute and acknowledge a certificate of discharge or release of the mortgage, the mortgagee is liable to the mortgagor, the heirs, successors in interest, representatives or assigns of the mortgagor, in the sum of $300 damages, and also for all damages occasioned by the neglect or refusal. Sec. 34.20.060. Definition. In AS 34.20.010 — 34.20.060, “conveyance” includes every instrument in writing by which an estate or interest in real property is created, alienated, mortgaged, or encumbered, or by which the title to real property is affected, except a will. Article 2. Deeds of Trust. Sec. 34.20.070. Sale by trustee. (a) If a deed of trust is executed conveying real property located in the state to a trustee as security for the payment of an indebtedness and the deed provides that in case of default or noncompliance with the terms of the trust, the trustee may sell the property for condition broken, the trustee, in addition to the right of foreclosure and sale, may execute the trust by sale of the property, upon the conditions and in the manner set forth in the deed of trust, without first securing a decree of foreclosure and order of sale from the court, if the trustee has complied with the notice requirements of (b) of this section. If the deed of trust is foreclosed judicially or the note secured by the deed of trust is sued on and a judgment is obtained by the beneficiary, the beneficiary may not exercise the nonjudicial remedies described in this section. (b) Not less than 30 days after the default and not less than 90 days before the sale, the trustee shall record in the office of the recorder of the recording district in which the trust property is located a notice of default setting out (1) the name of the trustor, (2) the book and page where the trust deed is recorded or the serial number assigned to the trust deed by the recorder, (3) a description of the trust property, including the property's street address if there is a street address for the property, (4) a statement that a breach of the obligation for which the deed of trust is security has occurred, (5) the nature of the breach, (6) the sum owing on the obligation, (7) the election by the trustee to sell the property to satisfy the obligation, (8) the date, time, and place of the sale, and (9) the statement described in (e) of this section describing conditions for curing the default. An inaccuracy in the street address may not be used to set aside a sale if the legal description is correct. At any time before the sale date stated in the notice of default or to which the sale is postponed under AS 34.20.080 (e), if the default has arisen by failure to make payments required by the trust deed, the default may be cured and sale under this section terminated by payment of the sum then in default, other than the principal that would not then be due if no default had occurred, and attorney and other foreclosure fees and costs actually incurred by the beneficiary and trustee due to the default. If, under the same trust deed, notice of default under this subsection has been recorded two or more times previously and the default has been cured under this subsection, the trustee may elect to refuse payment and continue the sale. (c) Within 10 days after recording the notice of default, the trustee shall mail a copy of the notice by certified mail to the last known address of each of the following persons or their legal representatives: (1) the trustor in the trust deed; (2) the successor in interest to the trustor whose interest appears of record or of whose interest the trustee or the beneficiary has actual notice, or who is in actual physical possession of the property; (3) any other person actually in physical possession of the property; (4) any person having a lien or interest subsequent to the interest of the trustee in the trust deed, where the lien or interest appears of record or where the trustee or the beneficiary has actual notice of the lien or interest, except as provided in (f) of this section. The notice may be delivered personally instead of by mail. (d) If the State of Alaska is a subsequent party, the trustee, in addition to the notice of default, shall give the state a supplemental notice of any state lien existing as of the date of filing the notice of default. This notice must set out, with such particularity as reasonably available information will permit, the nature of the state's lien, including the name and address, if known, of the person whose liability created the lien, the amount shown on the lien document, the department of the state government involved, the recording district, and the book and page on which the lien was recorded or the serial number assigned to the lien by the recorder. (e) The statement required by (b)(9) of this section must state that, if the default has arisen by failure to make payments required by the trust deed, the default may be cured and the sale under this section terminated if (1) payment of the sum then in default, other than the principal that would not then be due if default had not occurred, and attorney and other foreclosure fees and costs actually incurred by the beneficiary and trustee due to the default is made at any time before the sale date stated in the notice of default or to which the sale is postponed; and (2) when notice of default under (b) of this section has been recorded two or more times previously under the same trust deed and the default has been cured under (b) of this section, the trustee does not elect to refuse payment and continue the sale. (f) In (c)(4) of this section, if the existence of a lien or nonpossessory interest can only be inferred from an inspection of the real property, the person holding the lien or nonpossessory interest is not entitled to notice under (c) of this section unless the lien or nonpossessory interest appears of record or a written notice of the lien or nonpossessory interest has been given to the beneficiary or trustee before the recording of the notice of default. (g) If the trustee delivers notice personally under (c) of this section to the property or to an occupant of the property, the trustee may, notwithstanding (c) of this section, deliver the notice up to 20 days after the notice of default is recorded. If there is not a structure on the property and a person is not present on the property at the time of delivery, the trustee may place the notice on the property, or as close as practicable to the property if (1) there is not a practical road access to the property; or (2) access to the property is restricted by gates or other barriers. (h) If the trustee or other person who delivered notice under (g) of this section signs an affidavit for the delivery, the affidavit is prima facie evidence that the trustee complied with (g) of this section. After one year from the delivery, as evidenced by the affidavit, the trustee is conclusively presumed to have complied with (g) of this section unless, within one year from the delivery, an action has been filed in court to contest the foreclosure based on failing to comply with (g) of this section. (i) If a person who is entitled to receive notice by mail under (c) of this section is known by the beneficiary or trustee to be deceased, the trustee may satisfy the notice requirements of (c) of this section by mailing the notice to the last known address of the deceased person and to the personal representative of the deceased person if the beneficiary or trustee knows that a personal representative has been appointed for the deceased person. (j) If a person who is entitled to receive notice by mail under (c) of this section is known by the beneficiary or trustee to be deceased but the trustee and the beneficiary do not know that a personal representative has been appointed for the deceased person, the trustee may satisfy the notice requirements of (c) of this section by (1) mailing the notice to the heirs and devisees of the deceased person (A) whose names and addresses are known to the beneficiary or trustee; or (B) who have recorded a notice of their interest in the property; and (2) publishing and posting the notice of the foreclosure as provided by law for the sale of real property on execution, except that the notice must be titled “To the Heirs or Devisees of (insert the name of the deceased person)” and include in the body of the notice a list of the names of the persons who are known by the beneficiary or trustee to be the heirs and devisees of the deceased person. (k) If notice is given as required by (i) and (j) of this section, an heir or devisee of the deceased person may not challenge the foreclosure on the ground that the heir or devisee did not receive notice of the sale, unless the heir or devisee challenges the foreclosure on this ground within 90 days after the sale. (l) A person may bring an action in court to enjoin a foreclosure on real property only if the person is (1) the trustor of the deed of trust under which the real property was foreclosed; (2) a guarantor of the obligation that the real property is securing; (3) a person who has an interest in the real property that has been recorded; (4) a person who has a recorded lien against the real property; (5) an heir to the real property; (6) a devisee of the real property; or (7) the attorney general acting under other legal authority. (m) If a person brings an action under (l) of this section to stop a sale of real property, and if the sale is being brought because of a default in the performance of a nonmonetary obligation required by the deed of trust that the real property is securing, the court may impose on the person the conditions that the court determines are appropriate to protect the beneficiary. (n) In this section, “devisee,” “heir,” and “personal representative” have the meanings given in AS 13.06.050 . Sec. 34.20.080. Sale at public auction. (a) The sale authorized in AS 34.20.070 shall be made under the terms and conditions and in the manner set out in the deed of trust. The proceeds from a sale shall be placed in a trust account until they are disbursed. However, the sale shall be made (1) at public auction held at the front door of a courthouse of the superior court in the judicial district where the property is located, unless the deed of trust specifically provides that the sale shall be held in a different place, except that a trustee may also accept bids by telephone, the Internet, and electronic mail if the trustee has taken reasonable steps to ensure that the bidding methods using the telephone, the Internet, or electronic mail are fair, accessible, and designed to result in money that is immediately available for disbursement; and (2) after public notice of the time and place of the sale has been given in the manner provided by law for the sale of real property on execution. (b) The attorney for the trustee or another agent of the trustee may conduct the sale and act in the sale as the auctioneer for the trustee. The trustee may set reasonable rules and conditions for the conduct of the sale. Sale shall be made to the highest and best bidder. The beneficiary under the trust deed may bid at the trustee's sale. Except as provided by (g) of this section, the trustee shall execute and deliver to the purchaser a deed to the property sold. (c) The deed must recite the date and the book and page of the recording of default, and the mailing or delivery of the copies of the notice of default, the true consideration for the conveyance, the time and place of the publication of notice of sale, and the time, place, and manner of sale, and refer to the deed of trust by reference to the page, volume, and place of record or to the place of record and the serial number assigned to the deed of trust by the recorder. (d) After the sale an affidavit of mailing the notice of default and an affidavit of publication of the notice of sale shall be recorded in the mortgage records of the recording district where the property is located. (e) The trustee may postpone sale of all or any portion of the property by delivering to the person conducting the sale a written and signed request for the postponement to a stated date and hour. The person conducting the sale shall publicly announce the postponement to the stated date and hour at the time and place originally fixed for the sale. This procedure shall be followed in any succeeding postponement, but the foreclosure may not be postponed for more than 12 months unless a new notice of the sale is given under (a)(2) of this section. A sale may be postponed for up to 12 months from the sale date stated in the notice of default under AS 34.20.070 (b) without providing a basis for challenging the validity of the foreclosure process because of the length of time the foreclosure has been pending. (f) After delivery of a deed under (b) of this section, the trustee shall distribute any cash proceeds of the sale in the following order to (1) the beneficiary of the deed of trust being foreclosed until the beneficiary is paid the full amount that is owed under the deed of trust to the beneficiary; (2) the persons who held, at the time of the sale, recorded interests, except easements, in the property, that were subordinate to the foreclosed deed of trust; the distribution under this paragraph shall be made according to the priority of the recorded interest, and a recorded interest with a higher priority shall be satisfied before distribution is made to the recorded interest that is next lower in priority; however, if a person holds a recorded interest that is an assessment, the person is entitled only to the amount of the assessment that was due at the time of the sale; in this paragraph, “recorded interest” means an interest, including a lease, recorded under AS 40.17 ; (3) the trustor in the trust deed if the trustor is still the owner of the property at the time of the foreclosure sale, but, if the trustor is not still the owner of the property at the time of the foreclosure sale, then to the trustor's successor in interest whose interest appears of record at the time of the foreclosure sale. (g) The trustee may withhold delivery of the deed under (b) of this section for up to 10 days after the sale. If, during the 10 days, the trustee determines that the sale should not have proceeded, the trustee may not issue the deed but shall (1) inform the beneficiary, the otherwise successful bidder, and the trustor of the trust deed or the trustor's successor in interest that the sale is rescinded; and (2) return to the otherwise successful bidder money received from the otherwise successful bidder as a bid on the property; return of this money is the otherwise successful bidder's only remedy if the trustee withholds delivery of the deed under (b) of this section. (h) If a trustee rescinds a sale under (g) of this section and the obligation secured by the deed of trust remains in default, the trustee may, at the request of the beneficiary, reschedule the sale for a date that is not less than 45 days after the date of the rescinded sale. Not less than 30 days before the rescheduled sale date, the trustee shall (1) mail notice of the rescheduled sale date by certified mail to the last known address of each of the persons identified by AS 34.20.070 (c); and (2) publish and post the notice of the rescheduled sale date as provided by law for the sale of real property on execution. (i) Unless a sale is rescinded under (g) of this section, the sale completely terminates the rights of the trustor of the trust deed in the property. (j) If a sale is rescinded under (g) of this section, the deed of trust foreclosed in the rescinded sale is restored to the validity and priority it would have had as though the sale had not occurred. Sec. 34.20.090. Title, interest, possessory rights, and redemption. (a) The sale and conveyance transfers all title and interest that the party executing the deed of trust had in the property sold at the time of its execution, together with all title and interest that party may have acquired before the sale, and the party executing the deed of trust or the heirs or assigns of that party have no right or privilege to redeem the property, unless the deed of trust so declares. (b) The purchaser at a sale and the heirs and assigns of the purchaser are, after the execution of a deed to the purchaser by the trustee, entitled to the possession of the premises described in the deed as against the party executing the deed of trust or any other person claiming by, through or under that party, after recording the deed of trust in the recording district where the property is located. (c) A recital of compliance with all requirements of law regarding the mailing or personal delivery of copies of notices of default in the deed executed under a power of sale is prima facie evidence of compliance with the requirements. The recital is conclusive evidence of compliance with the requirements in favor of a bona fide purchaser or encumbrancer for value and without notice. Sec. 34.20.100. Deficiency judgment prohibited. When a sale is made by a trustee under a deed of trust, as authorized by AS 34.20.070 — 34.20.130, no other or further action or proceeding may be taken nor judgment entered against the maker or the surety or guarantor of the maker, on the obligation secured by the deed of trust for a deficiency. Sec. 34.20.110. Trust deeds recorded as mortgages. For the purposes of record, a deed of trust, given to secure an indebtedness, shall be treated as a mortgage of real estate, and recorded in full in the book provided for mortgages of real property. The person who makes or executes the deed of trust shall be indexed as “mortgagor,” and the trustee and the beneficiary or cestui que trust, as the “mortgagees.” Sec. 34.20.115. Procedure for reconveyance. (a) Unless the beneficiary has requested that a title insurance company reconvey a trust deed before the title insurance company mails or delivers the notice under (b) of this section, a title insurance company shall comply with the requirements of this section before reconveying the trust deed. (b) Not less than 30 days after payment in full of the obligation secured by a trust deed and receipt of satisfactory evidence of payment in full, a title insurance company shall (1) mail, by certified mail with postage prepaid, return receipt requested, to the beneficiary and the servicer, a notice of intent to reconvey; the notice shall be sent to the beneficiary's address and the servicer's address (A) stated in the trust deed; (B) stated in the last recorded assignment of the trust deed, if any; (C) shown in a request for notice recorded under (g) of this section; and (D) if any, personally known to the title insurance company; or (2) hand deliver to the beneficiary and to the servicer a notice of intent to reconvey. (c) The notice required by (b) of this section must be in substantially the following form and accompanied by a copy of the reconveyance to be recorded: NOTICE OF INTENT TO RECONVEYTO: (Beneficiary or servicer for beneficiary)FROM: (Title insurance company)DATE: ____________Notice is hereby given to you as follows:(1) This notice concerns the trust deed described as follows:Trustor: _____________________________________________________Beneficiary: _____________________________________________________Recording information for the trust deed: Serial number: __________________________________ or Book number: __________________________________ Page number: __________________________________Recording information for current assignment of trust deed: Serial number: __________________________________ or Book number: __________________________________ Page number: __________________________________(2) The undersigned title insurance company claims to have fully paid or received satisfactory evidence of the payment in full of the obligation secured by the trust deed described above.(3) Unless, within 90 days following the date stated above, the undersigned has received, by certified mail, return receipt requested, directed to the address noted below, a notice stating that you have not received payment in full of all obligations secured by the trust deed or that you otherwise object to reconveyance of the trust deed, the undersigned will fully release and reconvey the trust deed under AS 34.20.115 .(4) A copy of the reconveyance or release of the trust deed is enclosed with this notice.(Title insurance company)(Address)(Telephone number) (d) After at least 90 days have elapsed after the mailing or delivery of the notice of intent to reconvey under (b) of this section, if a title insurance company has not received an objection to the reconveyance, the title insurance company may execute and record a reconveyance of the trust deed. (e) The reconveyance authorized by (d) of this section must be acknowledged under AS 09.63 and be in substantially the following form RECONVEYANCE OF TRUST DEED__________________________________, a title insurance company authorized to transact business in Alaska, does, by this document, reconvey, without warranty, to the person or persons legally entitled to the trust property, the following trust property covered by a trust deed naming __________________________________ as trustor and __________________________________ as beneficiary, which was recorded on __________________________________ at serial number __________________________________ or at book __________________________________ and page __________________________________:The following described property located in the __________________________________ Judicial District, State of Alaska:(Property description)The undersigned title insurance company certifies that(1) the undersigned title insurance company has fully paid or received satisfactory evidence of the payment in full of the obligation secured by the trust deed;(2) not less than 30 days following the payment in full of the trust deed, the undersigned hand delivered or mailed by certified mail, return receipt requested, to the record beneficiary under the trust deed and the servicer for the record beneficiary, at the beneficiary's and servicer's record addresses, and to any address personally known to this title insurance company, a notice of intent to reconvey as required by AS 34.20.115 ; and(3) at least 90 days have elapsed after the mailing or delivery of the notice of intent to reconvey, and the undersigned title insurance company has not received an objection to the reconveyance.Dated __________________________________________________________________________________________________________(Title insurance company)(Acknowledgment). (f) A reconveyance of a trust deed, when executed and acknowledged in substantially the form prescribed in (e) of this section, may be recorded and, when recorded, constitutes a reconveyance of the trust deed identified in the reconveyance, regardless of any deficiency in the reconveyance procedure that is not disclosed in the recorded reconveyance, except for forgery of the title insurance company's signature. The reconveyance of a trust deed under this section does not discharge a personal obligation that was secured by the trust deed at the time of its reconveyance. (g) A person who wants to receive a copy of a notice given under (b) of this section after the deed of trust is recorded and before the reconveyance is recorded under (d) of this section may record a request for a copy of the notice in the office of the recorder in the judicial district in which a part of the real property is located. The request must be acknowledged, must state the name and address of the person requesting the copy of the notice, and must identify the deed of trust by stating the names of the parties to the deed of trust, the date of recordation, and the serial number or book and page numbers where the deed of trust is recorded. (h) If, at any point during the procedure required by this section, the beneficiary requests the title insurance company to reconvey the trust deed, the title insurance company is not required to proceed with the rest of the procedure required by this section and may execute and record a reconveyance of the trust deed. (i) Except as provided in (a) and (h) of this section, if a title insurance company reconveys a trust deed without having satisfactory evidence of payment in full required under (b) of this section or without providing the prior notice to the beneficiary and the servicer as required under this section, the title insurance company is liable to the beneficiary and to the heirs, successors in interest, representatives, and assigns of the beneficiary for all damages occasioned by the neglect or the wilful act, and the title insurance company is liable to the state for a penalty of $300. (j) In this section, (1) “beneficiary” means both the record owner of the beneficiary's interest under a trust deed and a successor in interest; (2) “satisfactory evidence of payment in full,” with regard to an obligation secured by a trust deed or an encumbrance on the property covered by the trust deed, means a payoff letter, or, along with reasonable documentary evidence that the check was intended to effect full payment, (A) the original cancelled check; or (B) a copy, including a voucher copy, of a check, payable to the beneficiary or a servicer; (3) “servicer” means a person who handles, for a beneficiary of a trust deed, the receipt of the beneficiary's payments under the trust deed; (4) “title insurance company” means a title insurance company or a title insurance limited producer; in this paragraph, “title insurance company” and “title insurance limited producer” have the meanings given in AS 21.66.480 . Sec. 34.20.120. Substitution of trustee. (a) The trustee under a trust deed upon real property given to secure an obligation to pay money and conferring no duties upon the trustee other than the duties that are incidental to the exercise of the power of sale conferred in the deed may be substituted by recording in the mortgage records of the recording district in which the property is located a substitution executed and acknowledged by (1) all the beneficiaries under the trust deed, or their successors in interest; or (2) the attorneys for all of the beneficiaries or the attorneys for all of the beneficiaries' successors in interest. (b) The substitution must contain (1) the date of execution of the trust deed; (2) the names of the trustee, trustor, and beneficiary, and, if the substitution is executed by the attorney for the beneficiary or successor in interest to the beneficiary, the name, address, and Alaska Bar Association identification number of the attorney; (3) the book and page where the trust deed is recorded or the serial number assigned to the trust deed by the recorder; (4) the name of the new trustee; and (5) an acknowledgment signed and acknowledged by the trustee named in the trust deed of a receipt of a copy of the substitution, or an affidavit of service of a copy of it. (c) From the time the substitution is filed for record, the new trustee succeeds to all the powers, duties, authority, and title of the trustee named in the deed of trust. (d) When a title insurance company authorized to do business by a certificate of authority granted under AS 21.66 has been purchased by, merged into, or consolidated with, or has transferred all or substantially all of its business assets to, another authorized title insurance company, the surviving or successor company, by operation of law, succeeds to the duties of the predecessor company granted to that predecessor as trustee in any trust deed described in (a) of this section. Sec. 34.20.125. Trustee bond required. (a) Before performing the duties of a trustee under AS 34.20.070 and 34.20.080, a person shall obtain a surety bond in the amount of $100,000 to protect the trustors and beneficiaries of trust deeds against fraud or defalcation by the trustee in the performance of the duties. (b) The bond required by (a) of this section must be a bond that is terminable at any time by the surety by sending written notice by first class United States mail to the obligee and the principal at the address for each that is last known by the surety, and to the department. The bond terminates when 45 days have expired after the date the notice is mailed. The surety is not liable for an act or omission of the principal that occurs after the termination. The surety is not liable after the termination for more than the face amount of the bond, regardless of the number of claims made against the bond or the number of years the bond remains in force. A revision of the amount of the bond is not cumulative. (c) If a bond terminates under (b) of this section, the person who obtained the bond under (a) of this section shall give notice of the bond's termination to the department and may not act as a trustee until the person obtains another bond under (a) of this section. (d) Each year, a trustee shall file evidence of the bond with the department. The department shall verify that the evidence is satisfactory to indicate the existence of the bond, keep an updated list of trustees who are bonded, and make the evidence and the list available to the public for inspection. The department may charge the trustee a reasonable fee for verifying the existence of the bond and maintaining the records required by this subsection. (e) The bonding requirements of this section do not apply to (1) a state agency, including the Alaska Housing Finance Corporation and the Alaska Industrial Development and Export Authority; or (2) an attorney who is licensed to practice law in this state and is an active member of the Alaska Bar. (f) In this section, “department” means the Department of Commerce, Community, and Economic Development. Sec. 34.20.130. Recording assignment, subordination, or waiver. (a) The following instruments may be recorded: (1) an assignment of the beneficial interest under a deed of trust; or (2) an instrument by which a deed of trust of real property is subordinated or waived as to priority. (b) From the time it is filed for record, the instrument operates as constructive notice to all persons. Sec. 34.20.135. Definition. In AS 34.20.070 — 34.20.130, “real property” or “property” includes an interest in real property. Article 3. Miscellaneous Provisions. Sec. 34.20.140. Recording memorandum extending lien. Where the payment of an existing contract (a bill of exchange, promissory note, bond, or other evidence of indebtedness) is secured by an instrument creating a lien upon real estate, payment on the contract does not extend the lien beyond its original or extended period as against subsequent purchasers, optionees, mortgagees, creditors, or persons acquiring a lien upon the real estate, unless (1) a memorandum of the payment is recorded in the office of the recording district where the property is located; (2) the memorandum is recorded before the end of the statutory time for bringing an action upon the existing contract and extensions as exhibited by the terms of the recorded instrument; and (3) the memorandum is signed and acknowledged by the owner or the representative of the owner of the existing contract of indebtedness. Sec. 34.20.150. Maturity of lien. (a) The date of maturity of an instrument creating a lien upon real property is considered to be 10 years from the date of the instrument, unless (1) the period of the instrument is disclosed by the terms of the instrument; or (2) another instrument extending the period of the first instrument or a memorandum of payment of the first instrument is recorded. (b) When an existing recorded instrument is recorded before March 26, 1955, which creates a lien upon real property but which does not disclose the period of the instrument, another instrument extending the period of the first instrument, or a memorandum of payment of the first instrument may be recorded before January 1, 1956. Sec. 34.20.160. Notice of other remedies. (a) When a lender uses a note as evidence of an obligation secured by a mortgage or deed of trust, the note must affirmatively advise the mortgagor or trustor and any other party bound by the note if the mortgagee or beneficiary wants the option to bring suit directly on the note to collect an amount owing under the note without first foreclosing the mortgage or deed of trust. This option must be stated in writing within the note or as a separate document. If a note executed after May 24, 1988 fails to contain the notice specified in this section, the debt secured by the mortgage or deed of trust may be foreclosed under AS 09.45.170 — 09.45.220 or AS 34.20.070 — 34.20.135. (b) If the mortgagee or beneficiary wishes to collect an amount owing under the note without first foreclosing the mortgage or deed of trust, the following language is sufficient in the note: The mortgagor or trustor (borrower) is personally obligated and fully liable for the amount due under the note. The mortgagee or beneficiary (lender) has the right to sue on the note and obtain a personal judgment against the mortgagor or trustor for satisfaction of the amount due under the note either before or after a judicial foreclosure of the mortgage or deed of trust under AS 09.45.170 — 09.45.220.