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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Dwight, thank you for the heads up on this case.
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<p class="MsoNormal"><a name="Paul_A__Neumiller"><img width="250" height="150" style="width:2.6in;height:1.5583in" id="_x0000_i1025" src="cid:image001.jpg@01D884AF.5D542B10"></a><o:p></o:p></p>
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<p class="MsoNormal"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Dwight Bickel<br>
<b>Sent:</b> Friday, June 17, 2022 1:12 PM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBARP] Priority of Future Advances Not for Construction<o:p></o:p></p>
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<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Verdana",sans-serif;color:#002060">Yesterday the WA Supreme Court resolved an argument that has needed a legislative solution since 1973 [</span><i><span style="font-size:13.0pt;font-family:"TimesNewRomanPS-ItalicMT",serif">Nat’l
Bank of Wash. v. Equity Inv’rs</span></i><span style="font-size:13.0pt;font-family:"TimesNewRomanPSMT",serif">, 81<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:13.0pt;font-family:"TimesNewRomanPSMT",serif">Wn.2d 886</span><span style="font-family:"Verdana",sans-serif;color:#002060">] and the predecessor statute 60.04.226. Despite the consistent plea of lenders to read that
statute more broadly, the now settled law is that future advances that are not construction loan advances are only entitled to priority over intervening encumbrances if the advance is considered to be obligatory.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif;color:#002060"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif;color:#002060">This opinion does not reference, but does follow, the only prior judicial opinion that clearly limited 60.04.226 to construction loan advances. In 2002 a 9th Circuit Bankruptcy
Appellate Panel<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif;color:#002060">suggested in dicta that RCW 60.04.226 was limited to construction loan priority against mechanic's liens, and that optional advances would lose priority [<i>In re: Stanton</i>].<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060">Dwight A. Bickel<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060">Real Property Title Advisor<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060">Washington Title Professional<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060;border:none windowtext 1.0pt;padding:0in"><a href="mailto:Dwight@DwightBickel.com"><span style="color:#002060">Dwight@DwightBickel.com</span></a></span><span style="font-family:"Verdana",sans-serif;color:#002060"><o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060">https:/dwightbickel.com<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060;border:none windowtext 1.0pt;padding:0in">206-484-1976</span><span style="font-family:"Verdana",sans-serif;color:#002060"><o:p></o:p></span></p>
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