Under Alaska's Deed of Trust Act (AS 34.20.070–34.20.135), which of the following is NOT a required party to a deed of trust?
Correct Answer
D) The guarantor, who provides a personal guarantee of the loan obligation
A deed of trust under AS 34.20.070 requires exactly three parties: the trustor (borrower), the beneficiary (lender), and the trustee (neutral third party holding bare legal title). A guarantor is not a required party to a deed of trust. While a lender may separately require a personal guarantee as additional credit support, the guarantor is not part of the deed of trust instrument itself and is not required by Alaska's Deed of Trust Act.
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Previous Question
A borrower in Anchorage obtains a $320,000 deed of trust loan at a fixed annual interest rate of 6%. The loan is interest-only for the first year. During the first full month of the loan, what is the borrower's interest payment?
Next Question
A lender in Alaska is evaluating a loan application for a property where the deed conveys only surface rights. The seller has disclosed that the subsurface mineral, oil, and gas rights are owned by the State of Alaska. The appraiser values the surface rights at $280,000. The lender is concerned about the impact of severed subsurface rights on the collateral. Which statement BEST describes the correct handling of this situation under Alaska law and practice?