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

Heading: intention

Text: The majority determines that the Rumerys had no objective intent to treat the pipe as a fixture because of its treatment in financial transactions as equipment. Support for this conclusion is not to be found factually from this record as demonstrated by the purchase money nature of the original transaction. [4] However, equipment can also be a fixture. 2 Alderman and Dole, A Transactional Guide To The Uniform Commercial Code, § 7.14, at 906 (2d ed. 1983). As well, the objective intent is derived at the time of annexation.    Neither the intention existing at the time of procuring the article nor that which exists while the same is being transported to the real property where it is designed to be placed, nor the secret plan in the mind of the person making the annexation, govern. The controlling intention is that which the law deduces from all of the circumstances of the installation of the article upon the land.    First State & Savings Bank v. Oliver, 101 Or. 42, 198 P. 920, 922 (1921) citing Roseburg Nat. Bank v. Camp, 89 Or. 75, 173 P. 313, 315 (1918). See also Rayl v. Shull Enterprises, Inc., supra and Johnson v. Hicks, supra. Thus, it is irrelevant how the parties treated the pipe in 1969 and 1985 since the loan was made in 1978. It is the intent when purchase was made by state loan funds that is now significant. A similar argument is unpersuasive that even if ordinarily the chattels would be considered fixtures, they lost that character by the fact the Rumerys had previously executed chattel mortgages on personal property. The Washington supreme court disposed of this argument as not applicable in a similar situation in Parrish v. Southwest Washington Production Credit Ass'n, 41 Wash.2d 586, 250 P.2d 973, 975-976 (1952). See also Planter's Bank v. Lummus Cotton Gin Co., supra, 128 S.E. at 881. Therefore, intent is to be determined at the time of installation and the circumstances of any previous or subsequent treatment is not meaningful as to the purchase money lender in characterization whether the pipe was a fixture upon acquisition and installation.