Opinion ID: 1215594
Heading Depth: 1
Heading Rank: 3

Heading: fcscc security interests and fixture filing requirements

Text: The Board, in its brief, has not set forth any explanation for the legal significance of its issue. We will discuss this briefly. FCSCC relies primarily on its perfected 1969 security interest in after-acquired farm and ranch equipment. That interest was created when WPCA and the Rumerys executed a valid security agreement containing a general description of relevant collateral as after acquired farm and ranch machinery and equipment. [4] See §§ 34-21-920, W.S. 1977; XX-XX-XXX, W.S. 1977 (Cum. Supp. 1987); XX-XX-XXX(a)(b), W.S. 1977, (Cum.Supp. 1987); and Landen v. Production Credit Association of the Midlands, Wyo., 737 P.2d 1325, 1328-1330 (1987). The interest was properly perfected under §§ 34-21-931 and 34-21-951, W.S. 1977 (Cum.Supp. 1987), when WPCA filed a general financing statement showing a security interest in    [a]ll of the Debtor's farm and ranch machinery and equipment   . Under our recent holding in Landen v. Production Credit Association of the Midlands, supra , this financing statement was sufficient notice to a subsequent lender that a security interest in after acquired equipment existed. The existence of perfected security interest in after-acquired property provides the legal basis for the Board's issue. If the pipe has become a fixture on the irrigated real property, FCSCC's 1969 security interest can only establish priority in the pipe if there has been a timely fixture filing [5] under § 34-21-942(d), W.S. 1977 (Cum.Supp. 1987), which provides: (d) A perfected security interest in fixtures has priority over the conflicting interest of an encumbrancer or owner of the real estate where: (i) The security interest is a purchase money security interest, the interest of the encumbrancer or owner arises before the goods become fixtures, the security interest is perfected by a fixture filing before the goods become fixtures or within ten (10) days thereafter, and the debtor has an interest of record in the real estate or is in possession of the real estate; or (ii) The security interest is perfected by a fixture filing before the interest of the encumbrancer or owner is of record, the security interest has priority over any conflicting interest of a predecessor in title of the encumbrancer or owner, and the debtor has an interest of record in the real estate or is in possession of the real estate; or (iii) The fixtures are readily removable factory or office machines or readily removable replacements of domestic appliances which are consumer goods, and before the goods become fixtures the security interest is perfected by any method permitted by this article; or (iv) The conflicting interest is a lien on the real estate obtained by legal or equitable proceedings after the security interest was perfected by any method permitted by this article. A fixture designation of the pipe might also raise an issue under § 34-21-942(f), concerning construction mortgages: [6] (f) Notwithstanding paragraph (i) of subsection (d) of this section but otherwise subject to subsections (d) and (e) of this section, a security interest in fixtures is subordinate to a construction mortgage recorded before the goods become fixtures if the goods become fixtures before the completion of the construction. To the extent that it is given to refinance a construction mortgage, a mortgage has this priority to the same extent as the construction mortgage. On the other hand, if we hold the pipe to be goods, [7] but not a fixture, FCSCC would have the only valid security interest in the pipe under exclusive application of the U.C.C. § 34-21-904, W.S. 1977 (Cum.Supp. 1987).