Your Team of Anchorage Alaska Real Estate Professionals

TABLE OF CONTENTS

1. General Information
   
2. Offeror Qualifications
   
3. Purchase Procedures
   
4. Purchase Information
   
5. Conditions Of Purchase
   
6. Appeal Process
   
7. Errata information
   
8. TLO's Right to Withdraw Parcels or Cancel Sale
   
9. Contacts
   
10. Forms

1. General Information

Introduction
Welcome to the Alaska Mental Health Trust Land Office (TLO) 2009 Over-the-Counter Land Sale website. The purpose of this information is to:

• describe the TLO's Over-the-Counter Land Sale process and schedule;
• provide information regarding conditions of sale; and
• illustrate the location of the parcels offered.

The TLO is offering parcels in its 2009 Over-the-Counter Land Sale on behalf of the Alaska Mental Health Trust Authority (The Trust). The parcels will be sold starting at 9:00 am on June 17, 2009 for the price listed on the TLO website (see Section 3. Purchase Procedures).

The parcels are located in the following areas:

Southeast Alaska

• Meyers Chuck, Meyers Chuck Subdivision
• Thorne Bay, South Throne Bay Subdivision
• Kosciusko Island, Edna Bay Subdivision
• Whale Pass, Whale Passage Subdivision
• Wrangell, Wrangell Island West Subdivision
• Wrangell, Wrangell Island East Subdivision
• Petersburg, Falls Creek Subdivision
• Sitka, Middle Island Subdivision

Southcentral Alaska

• Little Tutka Bay
• Valdez, Richardson Highway Lot
• Big Lake Area
• Wasilla, Bruce Lake Subdivision
• Wasilla, Greensward Subdivision

Northern Alaska

• Tok, Tok South Addition Subdivision
• Delta Junction, Greely Subdivision
• Nenana, Nenana South Subdivsion
• Fairbanks, Olnes West Subdivision
• Fairbanks, Olnes East Subdivision
• Fairbanks, Chena Hot Springs II Subdivision

Sale Schedule:

• June 3, 2009 - Information regarding the 2009 Over-the-Counter Land Sale including parcel information, purchase price, and sale policy and procedures will be available on-line.
• June 17, 2009 - Offers to purchase will begin to be accepted.

2. Offeror Qualifications

To be a qualified Offeror to purchase Trust land, an individual must be at least 18 years of age on or before an Offer to Purchase is submitted to the TLO. Two or more individuals may jointly submit an offer; however, each must be qualified. Successful Offerors' names will carry forward to the purchase agreement or deed; no names will be added or removed before the purchase agreement is executed. Upon approval by the TLO, additional names may be added to the executed purchase agreement through a purchase assignment for a $300.00 transaction fee.

Offerors do not have to be an Alaska resident or Alaska corporation to purchase a Trust land parcel. Offerors may acquire more than one Trust land parcel.

An employee or contractor of a State agency or other instrumentality of the State that gains knowledge of the disposal area at State expense, or is in a position to obtain inside information about the disposal process may not submit an Offer to Purchase any parcels for the first 30 days that it is offered over the counter under AS 38.05.057(f) or AS 38.05.060.

The TLO does not offer a Veteran discount for land sales (AS 38.05.940) of Trust land per regulations adopted under 11 AAC 99.040(c). Offering discounted land sales is inconsistent with The Trust principle requiring Trust land to be managed for maximization of long-term revenue to The Trust. Provisions of law applicable to other state land that appear to be in conflict with the management of Trust land under Trust principles as described in the Alaska Mental Health Enabling Act (P.L. 84-830, 70 Stat. 709 (1956)) are inconsistent with Trust land sales and do not apply.

3. Purchase Procedures

Parcels in the 2009 Over-the-Counter Land Sale remain available until sold, withdrawn by the Executive Director of the TLO, or until the closure of the 2009 Over-the-Counter Land Sale. A parcel may be withdrawn from the sale in order to review its valuation. After re-evaluation, the property may be returned to the Over-the-Counter Land Sale or held out for a later sale, or withdrawn from the sale and potentially reoffered at later date.

All Offers to Purchase must be mailed via the United States Postal Service or an express carrier. Offers will not be accepted by walk-in, over the phone, fax, or e-mail.

Starting June 17, 2009 the TLO will accept offers through the United States Postal Service or express carrier. Offers received before 4:00 pm at the TLO will be processed on the first business day after they are received, excluding State of Alaska holidays. If more than one offer is received for the same parcel on the same day, the TLO will conduct a drawing to determine the priority of the potential Offeror. The transaction fee and down payment will be returned to the Offeror if they are not drawm to purchase a parcel. Offerors may not assign or transfer their option to purchase.

Offer to Purchase Form

Offer to Purchase Forms must be mailed to:

Trust Land Office
Attn: Land Sales
718 L Street, Suite 202
Anchorage, AK 99501

Offers must include either a certified check, money order, or the credit card voucher form sufficient to cover all fees and the down payment of 10% of the purchase price listed. Please make certified checks and money orders payable to: Trust Land Office. All offers must include:

• completed Offer to Purchase Form;
• $500 transaction fee; and
• down payment of 10% of the purchase price for TLO financing, or the payoff amount.

If, after acceptance of the offer to purchase, the Offeror decides not to complete the sale contract, 5% of the purchase price and the $500 transaction fee will be retained by the TLO.

4. Purchase Information

Within approximately two weeks of the receipt of the Offer to Purchase Form is received by the TLO, the Offeror will be notified via certified mail of the accepted offer to purchase. The notification will include a land sale contract for completion by the Purchaser. The TLO must receive the signed sale contract within 21 days from the receipt of the certified notification.

Financing is available for Purchasers whose remaining balance is more than $2,000. If the principal sum is less than $2,000, the purchase price must be paid in full.

All Purchasers, whether financing through the TLO or not, will pay a transaction fee of $500 at the time the Offer to Purchase Form is submitted. Offerors have the following options for submittal with their Offer to Purchase Form:

• Payment in full, plus the transaction fee of $500; or
• TLO financing, including the transaction fee of $500.

Purchase by Contract

If the principal sum remaining after the 10% down payment is more than $2,000 and less than or equal to $5,000 the TLO offers an annual payment contract only. The first payment under an annual contract will be due 12 months after the effective date of the contract. If the financed principal sum is more than $5,000, the TLO will offer either a quarterly or annual payment contract. Under a quarterly payment contract, the first payment will be due three months after the effective date of the contract.

Principal and interest payments will be set on a level-payment basis over a period of up to 20 years, according to the following financed principal amounts:

• $2,000 to $9,999.99, not more than 5 years;
• $10,000 to $14,999.99, not more than 10 years;
• $15,000 to $19,999.99, not more than 15 years; or
• $20,000 or more, not more than 20 years.

Every land sale contract requires a payment of at least $100 of principal each year. Interest charged on the unpaid balance is fixed throughout the term of the contract and will be calculated based on the prime rate as reported in the Wall Street Journal on the first business day of the month in which the contract is sent to the Purchaser, plus three percent (3%). Interest begins to accrue on the date shown on the face of the signed contract.

Payments must be made in advance of the due date. There is no prepayment penalty, but payments made more than 30 days in advance of the due date are considered to be additional payments, and the regular payment will still be required unless the TLO is specifically notified in writing. Late charges are described in the land sale contract. There is no fee for early payoff of the contract. Payments are due whether or not the Purchaser receives a Courtesy Billing Notice sent by the Department of Natural Resources on behalf of the TLO.

The TLO reserves the right to direct payments to a bank of its choice in the future. Purchasers using TLO financing will be responsible for paying any potential future bank service fees.

The TLO will not subordinate its interest to lenders providing construction loans; therefore the Purchaser must either pay off the TLO prior to obtaining further loans or ensure the TLO is always in first position, ahead of all other loans.

5. Conditions of Purchase

Deed via Quitclaim/AS-IS Purchase

Alaska Mental Health Trust Land was conveyed from the State of Alaska to the Alaska Mental Health Trust Authority by quitclaim deed, conveying The Trust all rights and title that the State had in the conveyed estate. The TLO does not warrant title. In addition, The Alaska Mental Health Trust reserves the mineral estate to The Trust. Purchasers are welcome to acquire title insurance at their expense. If for any reason the underlying State of Alaska title is not valid, all money paid to purchase the land will be refunded. The Trust has no further liability to the Purchaser for the termination of the contract.

These parcels are of varying quality. It is strongly suggested that prior to the sale all prospective Purchasers personally examine the parcels in which they are interested to determine if the land will meet their needs and desires. The Trust does not guarantee the condition or usefulness of the land offered. The land chosen by an applicant is taken AS-IS WHERE-IS with no guarantees, expressed or implied as to the suitability of any intended use, availability of water, or for any other reason whatsoever.

Parcels are sold as-is where-is via quitclaim deed with all faults, and in the condition as of the date of the sale with no guarantees, expressed or implied, as to suitability or fitness for any intended use. All Offerors have the responsibility to inspect the parcels and become thoroughly acquainted with the parcel condition. Failure to inspect constitutes acceptance of the parcel as-is where-is.

Access

The Trust makes no representations or warranty that it will construct or maintain access to the parcel. Some parcels are not road accessible; however, legal access may exist along a surveyed section line or a platted right-of-way. The Trust has no legal obligation to build roads to any parcel.

The location of legal access to a specific subdivision may be obtained from the Department of Natural Resources Public Information Centers. Please note that rights-of-way shown on subdivision maps designate areas reserved for road construction and access but do not necessarily indicate the existence of a constructed road.

Homeowner's Associations

If a subdivision has an incorporated Homeowner's Association, subsequent owners of parcels automatically become members. A Homeowner's Association generally established its by-laws to assess lots within the subdivision for the costs of capital improvements and maintenance. To find out if a subdivision has an active incorporated Homeowner's Association, contact the Department of Commerce and Economic Development, Division of Corporations, Business, and Professional Licensing (907-465-2530) or via the internet: http://www.commerce.state.ak.us/occ/home.htm.

Reservations/Existing Encumbrances

The subdivision plat for the offered parcels may impose restrictions that are not listed on this website. Parcels are subject to rights-of-ways, easements, setbacks, roads, trails, plat notes, and other restrictions. Purchasers should review the subdivision plat available at any of the DNR Public Information Centers listed in Section 9 and on the Department of Natural Resources website: http://plats.landrecords.info/. Subdivision and status plats may be obtained from the DNR Public Information Centers. Charges may apply. As noted above, The Alaska Mental Health Trust reserves the mineral estate. Reservation codes describing special encumbrances on parcels are listed at the end of this section.

Maps on the TLO's 2009 Over-the-Counter Land Sale website are intended to provide a graphic illustration of the offered parcels and should only be used for general location purposes.

The following list identifies some of the types of encumbrances that may be recorded on the survey plat reserved by the State or TLO on the parcels. This list is not all-inclusive. The reservation codes are defined as follows:

Surface and Subsurface Resources

Except to the extent reasonably necessary to construct buildings and improvements on the parcel, (or without prior written consent by the TLO) Purchasers are not permitted to sell or remove from the parcel any surface resource such as timber, stone, gravel, sand, top soil, or any other material valuable for commercial or off-site purposes until quitclaim deed has been conveyed. The commercial sale of timber in violation of this restriction is strictly prohibited.

Wetlands

Some Trust parcels may contain wetlands. Purchasers are responsible for obtaining any necessary permits from the U.S. Army Corps of Engineers prior to filling or dredging in wetlands.

Improvements

It is the responsibility of the Purchaser to properly locate improvements within their parcel. No improvements may be constructed within platted easements or rights-of-ways. It is the Purchaser's responsibility to obtain all necessary authorizations from federal, state, or local agencies prior to constructing any improvements.

Taxes

Parcels offered by The Trust are subject to taxes and assessments levied by local taxing authorities. After a land sale contract has been executed, the Purchaser is liable for all taxes and assessments.

Sewer and Water

No individual water supply system or sewage disposal system shall be permitted on any lot unless such system is located, constructed, and equipped in accordance with the requirements of the Alaska Department of Environmental Conservation (ADEC). Many of the subdivisions included in this offering have some restrictions on the types of sewage disposal systems that are allowed. For more information regarding a particular subdivision or lot, please refer to the subdivision survey plat and contact the appropriate office of the ADEC.

Eagle Nesting Sites

Federal law prohibits any disturbance of eagles or their nests. If there is an eagle nest on the parcel, please consult the United States Fish & Wildlife Services (USFWS) concerning eagle nesting sites: http://alaska.fws.gov/birds/guidelines/index.html. Please direct all eagle or eagle nest inquires to the USFWS.

6. Appeal Process

If an Offeror believes there are irregularities in the purchase and sale process, they may file an appeal. The written appeal must be received by the TLO within 20 days of a decision or action. The appeal must specify the purpose of the appeal and why an alternate decision or action is not consistent with Trust Land Management Regulations (11 AAC 99).

7. Errata Information

The TLO reserves the right to modify information posted on this website at any time without prior notice. Offerors shall be bound by the most current land sale terms and conditions at the time an offer is received. The policies, procedures, terms, and conditions posted on this website are intended for information purposes only and does not constitute an offer to sell. It is possible that this website may be modified after initial posting. It is the Purchaser's responsibility to check with the TLO for any changes or corrections prior to mailing an offer.

8. TLO's Right to Withdraw Parcels or Cancel Sale

To protect the interest of The Trust, the TLO reserves the right to postpone or cancel any land offering. Individual parcels may be withdrawn from the sale process at any time prior to the TLO signing the final conveyance document. In the event that the TLO cancels a land offering, all fees and deposits paid to the TLO will be reimbursed to the Offeror within 30 days.

9. Contacts

Trust Land Office
718 L Street, Suite 202
Anchorage, AK 99501
Phone: (907) 269-8658
Fax: (907) 269-8905
TLO Web Page: www.mhtrustland.org

Alaska Department of Natural Resources:

Southcentral Region

Public Information Center
550 West 7^th Avenue, Suite 1260
Anchorage, AK 99501
Phone: (907) 269-8400

Northern Region

Public Information Center
3700 Airport Way
Fairbanks, AK 99709
Phone (907) 451-2705

Southeast Region

Information Office
400 Willoughby Avenue, 4^th Floor
Juneau, AK 99801
Phone (907) 465-3400

10. Forms