Opinion ID: 777160
Heading Depth: 2
Heading Rank: 2

Heading: The Liens Arose Post-petition Under Washington Law.

Text: 39 Under Washington law, liens based on optional advances take effect at the time of each advance. 7 See Nat'l Bank of Wash. v. Equity Investors, 81 Wash.2d 886, 506 P.2d 20, 29-30 (1973); cf. John M. Keltch, Inc. v. Don Hoyt, Inc., 4 Wash.App. 580, 483 P.2d 135, 137-38 (1971) (holding that liens based on mandatory advances are effective at the time of recordation). 8 The language in the Factoring Agreement makes the advances wholly optional: [Creditor] is not obligated to buy any account from [Fleet], and reserves the right to decline to purchase any Account that [creditor] deems unacceptable in its sole discretion. Moreover, creditor admitted in the reply brief that creditor was not required to make advances. Under Washington law, a new lien arose at the time of each advance. 9 The new liens on the debtors' estate to secure new advances to Fleet after the bankruptcy proceeding was commenced required approval by the bankruptcy court that had protective jurisdiction over the debtors' estate. 40