Sec. 06.05.260. Pledge, assignment, and transfer of assets.

407 words·~2 min read·/ak/title-6/chapter-5/06-05-260

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A bank may not give preference to a depositor or creditor by pledging any of the assets of a bank as collateral security except

(1)to the state to secure state funds, or to a municipal corporation or other public corporation, municipal utility or municipal utility board, or political subdivision of the state to secure its funds, and to the United States as may be required to make the bank a depository for United States funds;

(2)to secure a mortgage or deed of trust in connection with the purchase of banking premises as provided in AS 06.05.230 , if the only property pledged is property purchased in the transaction;

(3)to a federal reserve bank or federal home loan bank in the manner required by the applicable laws, regulations, and rules of the federal reserve bank or federal home loan bank, as applicable;

(4)to a federally recognized tribe or a wholly owned subdivision or wholly owned subsidiary of a federally recognized tribe;

(5)to a business enterprise that is wholly owned by a federally recognized tribe;

(6)to an inter-tribal consortium as defined in 25 U.S.C. 3202; or

(7)to a tribal organization as defined in 25 U.S.C. 5304.

(b)[Repealed, § 102 ch 26 SLA 1993.]

(c)A pledge, assignment, or transfer of any of the assets of a bank in violation of this section is null and void against the creditors of the bank.

(d)A bank may pledge the assets of the bank

(1)to a party to an interest rate swap agreement as collateral to secure the party's financial risk arising out of the agreement; the bank may make the pledge on the same terms and conditions applicable to a bank chartered by the United States in a pledge of assets in an interest rate swap agreement;

(2)to allow the bank to enter into an interest rate swap agreement to manage the bank's risk of fluctuating interest rates, but not for a purpose that involves a high risk of loss.

(e)In this section,

(1)“federally recognized tribe” means a tribe that the United States Secretary of the Interior recognizes as an Indian tribe under 25 U.S.C. 5131 (Federally Recognized Indian Tribe List Act of 1994);

(2)“interest rate swap agreement” means an agreement in which one stream of future interest payments is exchanged for another stream of future interest payments.