Bulletin: AK000016

Date:
October 23, 1992
To:
All Agents
RE:
Priority of Financing Statements

Dear Associates:

A trustee's sale generally eliminates all interests recorded subsequent to the deed of trust/trust deed being foreclosed.

One exception, however, is a financing statement evidencing purchase money security interests in fixtures. In Alaska, Oregon and Washington a purchase money security interest in fixtures has priority over a previously recorded deed of trust/trust deed. AS 45.09.310. ORS 79.3130. RCW 62A.9-313.

What does this mean? It means that financing statements disclosing loans made to purchase storm windows, appliances, furnaces, water heaters and other building improvements are not eliminated by foreclosure of a deed of trust/trust deed. This is true even though the deed of trust/trust deed was recorded before the financing statement.

When insuring titles derived from a trustee's sale do not eliminate financing statements that disclose a purchase money security interest even though the deed of trust/trust deed was recorded prior to the financing statement.

It may be difficult at times to distinguish between a purchase money security interest and a non-purchase money security interest. If you are uncertain, please contact me.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
6.20 Fixtures
 
12.32 Mortgage Foreclosures
 
20.04 Uniform Commercial Code
Exceptions Manual:
AK Mortgages
 
AK Uniform Commercial Code
Forms:
None