Alaska Bar Assoc. — Bankruptcy Section

We just spoke at the Alaska Bar Association — Bankruptcy Section on the issue of the Alaska usury statute.  We had less than two hour notice to prepare for the presentation.  The materials are available at the Bar Office.

The attendees seemed surprised to learn that the Cox v. Cooper decision actually doesn’t have very wide sweeping effect.  There are seven state statutes that exempt whole classes of creditors and transactions from the decision.  Two Federal acts also limit the decisions scope:  The Banking Act of 1864 and the Depository Institutions and Deregulation and Monetary Control Act of 1980.  These two acts exempt all federal banks and state banks that compete against federal banks from state regulation.  Add to that the Marquette National Bank v. First of Omaha Service Corp. and Smiley v. Citibank decisions and all interest and fees for banks are exempt from state regulation.

The Cox v. Cooper decision only concerns local Alaska credit between private parties.  The sky is not falling.  Even though the creditors bar insists that it is.  I wonder how much money the local and national banks will pay in fees for amicus briefs on a local issue with no bearing on their operations?  Indeed, regulating hard money lenders could actually send more business to the banks.

Thank you for the invite, Michelle Boutin, Chair of the Alaska Bar Association — Bankruptcy Law Section.

 

Standard for Review of Trial Court Action

A superior court abuses its discretion by making a decision that is arbitrary, capricious, manifestly unreasonable, or . . . stem[s] from an improper motive.  The court uses the clearly erroneous standard when reviewing factual findings, including findings regarding a party’s income, imputation of income, and voluntary underemployment.   Factual findings are clearly erroneous when, after reviewing the record as a whole,  the court is  left with a definite and firm conviction that a mistake has been made.    The court reviews a superior court’s interpretation of the civil rules and the Alaska Constitution de novo.

Based upon this standard the Supreme court reversed a superior court ruling ordering the state to certify a ballot initiative on Set netting.

Alaska Fisheries Conservation Alliance.  sp-7073 Set Netters Ballot Initiative

 

Alaska School Funding Formula Approved.

sp-7075 School Funding Formula

The State’s local school funding formula requires a local government to

make a contribution to fund its local school district. The superior court held that this

required local contribution is an unconstitutional dedication of a “state tax or license.”

But the minutes of the constitutional convention and the historical context of those

proceedings suggest that the delegates intended that local communities and the State

would share responsibility for their local schools. And those proceedings also indicate

that the delegates did not intend for state-local cooperative programs like the school

funding formula to be included in the term “state tax or license.” These factors

distinguish this case from previous cases.

 

Anchorage Platting Board Appointment

Dear Clayton Walker, Jr.,

Congratulations!  Your reappointment for the Platting Board has been approved by the Assembly for another three years, extending to October 14, 2018.

Attached is the Assembly Memorandum No. AM 617-2015.

Thank you so much for your time, dedication and service!  You are greatly appreciated!

Sandy Johnson

Municipality of Anchorage — Clayton Walker, Jr.Current Planning