A. E. Hagberg and Carl Burnett v. Alaska

MATTHEWS, Justice. OPINION. In 1976, the law pertaining to deed of trust sales, AS 34.20.070, was amended to permit the obligor under a note secured by a deed of trust to terminate a non-judicial deed of trust sale by paying all arrearages except those due because the acceleration clause 1 in the note has been exercised. 2 Prior law required payment of the full indebtedness when acceleration clauses were exercised. The question in this case is whether application of the 1976 amendment to deeds of trust executed before but foreclosed after the amendment became effective is prohibited by the contract clause of the Federal Constitution, which provides: No state shall... pass any law impairing the obligations of contract. 3 I