Bulletin: AK000004

Dear Associates:

It has been brought to my attention that a lien for unpaid fisheries business tax has priority over all other liens regardless of recording date.

This tax is a lien "upon all the real and personal property of the person liable for the tax, and upon all the real and personal property used with the permission of the owner to carry on the business which is subject to the tax". It has priority over "all other liens, mortgages, hypothecations, conveyances, and assignments". AS 43.10.042.

The fisheries tax is levied against persons in the business of salmon canned at or processed by a shore-based fisheries business and other "fisheries resources" processed by a shore-based or floating fisheries business. AS 43.75.015.

This means that we need to confirm that this tax has been paid on all policies and guarantees covering canneries or other fish processing businesses. If we cannot confirm payment, we will need to except liability for "taxes which may be due pursuant to AS 43.75.015".

This exception cannot be eliminated through foreclosure of a previously recorded deed of trust. The tax retains priority until paid.

Please contact me if you have any questions.