BILL REQ. #:  Z-0177.3 

Read first time 01/24/11.   Referred to Committee on Judiciary.

     AN ACT Relating to the Uniform Commercial Code Article 9A on secured transactions; amending RCW 62A.9A-102, 62A.9A-105, 62A.9A-307, 62A.9A-311, 62A.9A-316, 62A.9A-317, 62A.9A-326, 62A.9A-406, 62A.9A-408, 62A.9A-503, 62A.9A-507, 62A.9A-515, 62A.9A-516, 62A.9A-518, 62A.9A-521, 62A.2A-103, 43.340.050, and 60.56.015; adding new sections to chapter 62A.9A RCW; creating new sections; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 101   RCW 62A.9A-102 and 2001 c 32 s 16 are each amended to read as follows:
     (((a))) (1) Article 9A definitions. In this Article:
     (((1))) (a) "Accession" means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost.
     (((2)(A))) (b)(i) "Account," except as used in "account for," means a right to payment of a monetary obligation, whether or not earned by performance, (((i))) (A) for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of, (((ii))) (B) for services rendered or to be rendered, (((iii))) (C) for a policy of insurance issued or to be issued, (((iv))) (D) for a secondary obligation incurred or to be incurred, (((v))) (E) for energy provided or to be provided, (((vi))) (F) for the use or hire of a vessel under a charter or other contract, (((vii))) (G) arising out of the use of a credit or charge card or information contained on or for use with the card, or (((viii))) (H) as winnings in a lottery or other game of chance operated or sponsored by a state, governmental unit of a state, or person licensed or authorized to operate the game by a state or governmental unit of a state. The term includes health-care-insurance receivables.
     (((B))) (ii) The term does not include (((i))) (A) rights to payment evidenced by chattel paper or an instrument, (((ii))) (B) commercial tort claims, (((iii))) (C) deposit accounts, (((iv))) (D) investment property, (((v))) (E) letter-of-credit rights or letters of credit, or (((vi))) (F) rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card.
     (((3))) (c) "Account debtor" means a person obligated on an account, chattel paper, or general intangible. The term does not include persons obligated to pay a negotiable instrument, even if the instrument constitutes part of chattel paper.
     (((4))) (d) "Accounting," except as used in "accounting for," means a record:
     (((A))) (i) Authenticated by a secured party;
     (((B))) (ii) Indicating the aggregate unpaid secured obligations as of a date not more than thirty-five days earlier or thirty-five days later than the date of the record; and
     (((C))) (iii) Identifying the components of the obligations in reasonable detail.
     (((5))) (e) "Agricultural lien" means an interest, other than a security interest, in farm products:
     (((A))) (i) Which secures payment or performance of an obligation for:
     (((i))) (A) Goods or services furnished in connection with a debtor's farming operation; or
     (((ii))) (B) Rent on real property leased by a debtor in connection with its farming operation;
     (((B))) (ii) Which is created by statute in favor of a person that:
     (((i))) (A) In the ordinary course of its business, furnished goods or services to a debtor in connection with a debtor's farming operation; or
     (((ii))) (B) Leased real property to a debtor in connection with the debtor's farming operation; and
     (((C))) (iii) Whose effectiveness does not depend on the person's possession of the personal property.
     (((6))) (f) "As-extracted collateral" means:
     (((A))) (i) Oil, gas, or other minerals that are subject to a security interest that:
     (((i))) (A) Is created by a debtor having an interest in the minerals before extraction; and
     (((ii))) (B) Attaches to the minerals as extracted; or
     (((B))) (ii) Accounts arising out of the sale at the wellhead or minehead of oil, gas, or other minerals in which the debtor had an interest before extraction.
     (((7))) (g) "Authenticate" means:
     (((A))) (i) To sign; or
     (((B) To execute or otherwise adopt a symbol, or encrypt or similarly process a record in whole or in part, with the present intent of the authenticating person to identify the person and adopt or accept a record.
     (8))) (ii) With present intent to adopt or accept a record, to attach to or logically associate with the record an electronic sound, symbol, or process.
     (h) "Bank" means an organization that is engaged in the business of banking. The term includes savings banks, savings and loan associations, credit unions, and trust companies.
     (((9))) (i) "Cash proceeds" means proceeds that are money, checks, deposit accounts, or the like.
     (((10))) (j) "Certificate of title" means a certificate of title with respect to which a statute provides for the security interest in question to be indicated on the certificate as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral. The term includes another record maintained as an alternative to a certificate of title by the governmental unit that issues certificates of title if a statute permits the security interest in question to be indicated on the record as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral.
     (((11))) (k) "Chattel paper" means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods, or a lease of specific goods and license of software used in the goods. In this subsection, "monetary obligation" means a monetary obligation secured by the goods or owed under a lease of the goods and includes a monetary obligation with respect to software used in the goods. The term "chattel paper" does not include (((A))) (i) charters or other contracts involving the use or hire of a vessel or (((B))) (ii) records that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card. If a transaction is evidenced by records that include an instrument or series of instruments, the group of records taken together constitutes chattel paper.
     (((12))) (l) "Collateral" means the property subject to a security interest or agricultural lien. The term includes:
     (((A))) (i) Proceeds to which a security interest attaches;
     (((B))) (ii) Accounts, chattel paper, payment intangibles, and promissory notes that have been sold; and
     (((C))) (iii) Goods that are the subject of a consignment.
     (((13))) (m) "Commercial tort claim" means a claim arising in tort with respect to which:
     (((A))) (i) The claimant is an organization; or
     (((B))) (ii) The claimant is an individual, and the claim:
     (((i))) (A) Arose in the course of the claimant's business or profession; and
     (((ii))) (B) Does not include damages arising out of personal injury to, or the death of, an individual.
     (((14))) (n) "Commodity account" means an account maintained by a commodity intermediary in which a commodity contract is carried for a commodity customer.
     (((15))) (o) "Commodity contract" means a commodity futures contract, an option on a commodity futures contract, a commodity option, or another contract if the contract or option is:
     (((A))) (i) Traded on or subject to the rules of a board of trade that has been designated as a contract market for such a contract pursuant to federal commodities laws; or
     (((B))) (ii) Traded on a foreign commodity board of trade, exchange, or market, and is carried on the books of a commodity intermediary for a commodity customer.
     (((16))) (p) "Commodity customer" means a person for which a commodity intermediary carries a commodity contract on its books.
     (((17))) (q) "Commodity intermediary" means a person that:
     (((A))) (i) Is registered as a futures commission merchant under federal commodities law; or
     (((B))) (ii) In the ordinary course of its business, provides clearance or settlement services for a board of trade that has been designated as a contract market pursuant to federal commodities law.
     (((18))) (r) "Communicate" means:
     (((A))) (i) To send a written or other tangible record;
     (((B))) (ii) To transmit a record by any means agreed upon by the persons sending and receiving the record; or
     (((C))) (iii) In the case of transmission of a record to or by a filing office, to transmit a record by any means prescribed by filing-office rule.
     (((19))) (s) "Consignee" means a merchant to which goods are delivered in a consignment.
     (((20))) (t) "Consignment" means a transaction, regardless of its form, in which a person delivers goods to a merchant for the purpose of sale and:
     (((A))) (i) The merchant:
     (((i))) (A) Deals in goods of that kind under a name other than the name of the person making delivery;
     (((ii))) (B) Is not an auctioneer; and
     (((iii))) (C) Is not generally known by its creditors to be substantially engaged in selling the goods of others;
     (((B))) (ii) With respect to each delivery, the aggregate value of the goods is one thousand dollars or more at the time of delivery;
     (((C))) (iii) The goods are not consumer goods immediately before delivery; and
     (((D))) (iv) The transaction does not create a security interest that secures an obligation.
     (((21))) (u) "Consignor" means a person that delivers goods to a consignee in a consignment.
     (((22))) (v) "Consumer debtor" means a debtor in a consumer transaction.
     (((23))) (w) "Consumer goods" means goods that are used or bought for use primarily for personal, family, or household purposes.
     (((24))) (x) "Consumer-goods transaction" means a consumer transaction in which:
     (((A))) (i) An individual incurs a consumer obligation; and
     (((B))) (ii) A security interest in consumer goods secures the obligation.
     (((25))) (y) "Consumer obligation" means an obligation which:
     (((A))) (i) Is incurred as part of a transaction entered into primarily for personal, family, or household purposes; and
     (((B))) (ii) Arises from an extension of credit, or commitment to extend credit, in an aggregate amount not exceeding forty thousand dollars, or is secured by personal property used or expected to be used as a principal dwelling.
     "Consumer obligor" means an obligor who is an individual and who incurred a consumer obligation.
     (((26))) (z) "Consumer transaction" means a transaction in which (((A))) (i) an individual incurs a consumer obligation, (((B))) (ii) a security interest secures the obligation, and (((C))) (iii) the collateral is held or acquired primarily for personal, family, or household purposes. The term includes consumer-goods transactions.
     (((27))) (aa) "Continuation statement" means an amendment of a financing statement which:
     (((A))) (i) Identifies, by its file number, the initial financing statement to which it relates; and
     (((B))) (ii) Indicates that it is a continuation statement for, or that it is filed to continue the effectiveness of, the identified financing statement.
     (((28))) (bb) "Debtor" means:
     (((A))) (i) A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;
     (((B))) (ii) A seller of accounts, chattel paper, payment intangibles, or promissory notes; or
     (((C))) (iii) A consignee.
     (((29))) (cc) "Deposit account" means a demand, time, savings, passbook, or similar account maintained with a bank. The term does not include investment property or accounts evidenced by an instrument.
     (((30))) (dd) "Document" means a document of title or a receipt of the type described in RCW 62A.7-201(2).
     (((31))) (ee) "Electronic chattel paper" means chattel paper evidenced by a record or records consisting of information stored in an electronic medium.
     (((32))) (ff) "Encumbrance" means a right, other than an ownership interest, in real property. The term includes mortgages and other liens on real property.
     (((33))) (gg) "Equipment" means goods other than inventory, farm products, or consumer goods.
     (((34))) (hh) "Farm products" means goods, other than standing timber, with respect to which the debtor is engaged in a farming operation and which are:
     (((A))) (i) Crops grown, growing, or to be grown, including:
     (((i))) (A) Crops produced on trees, vines, and bushes; and
     (((ii))) (B) Aquatic goods produced in aquacultural operations;
     (((B))) (ii) Livestock, born or unborn, including aquatic goods produced in aquacultural operations;
     (((C))) (iii) Supplies used or produced in a farming operation; or
     (((D))) (iv) Products of crops or livestock in their unmanufactured states.
     (((35))) (ii) "Farming operation" means raising, cultivating, propagating, fattening, grazing, or any other farming, livestock, or aquacultural operation.
     (((36))) (jj) "File number" means the number assigned to an initial financing statement pursuant to RCW 62A.9A-519(a).
     (((37))) (kk) "Filing office" means an office designated in RCW 62A.9A-501 as the place to file a financing statement.
     (((38))) (ll) "Filing-office rule" means a rule adopted pursuant to RCW 62A.9A-526.
     (((39))) (mm) "Financing statement" means a record or records composed of an initial financing statement and any filed record relating to the initial financing statement.
     (((40))) (nn) "Fixture filing" means the filing of a financing statement covering goods that are or are to become fixtures and satisfying RCW 62A.9A-502 (a) and (b). The term includes the filing of a financing statement covering goods of a transmitting utility which are or are to become fixtures.
     (((41))) (oo) "Fixtures" means goods that have become so related to particular real property that an interest in them arises under real property law.
     (((42))) (pp) "General intangible" means any personal property, including things in action, other than accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, or other minerals before extraction. The term includes payment intangibles and software.
     (((43))) (qq) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
     (((44))) (rr) "Goods" means all things that are movable when a security interest attaches. The term includes (((A))) (i) fixtures, (((B))) (ii) standing timber that is to be cut and removed under a conveyance or contract for sale, (((C))) (iii) the unborn young of animals, (((D))) (iv) crops grown, growing, or to be grown, even if the crops are produced on trees, vines, or bushes, and (((E))) (v) manufactured homes. The term also includes a computer program embedded in goods and any supporting information provided in connection with a transaction relating to the program if (((i))) (A) the program is associated with the goods in such a manner that it customarily is considered part of the goods, or (((ii))) (B) by becoming the owner of the goods, a person acquires a right to use the program in connection with the goods. The term does not include a computer program embedded in goods that consist solely of the medium in which the program is embedded. The term also does not include accounts, chattel paper, commercial tort claims, deposit accounts, documents, general intangibles, instruments, investment property, letter-of-credit rights, letters of credit, money, or oil, gas, or other minerals before extraction or a manufactured home converted to real property under chapter 65.20 RCW.
     (((45))) (ss) "Governmental unit" means a subdivision, agency, department, county, parish, municipality, or other unit of the government of the United States, a state, or a foreign country. The term includes an organization having a separate corporate existence if the organization is eligible to issue debt on which interest is exempt from income taxation under the laws of the United States.
     (((46))) (tt) "Health-care-insurance receivable" means an interest in or claim under a policy of insurance which is a right to payment of a monetary obligation for health-care goods or services provided.
     (((47))) (uu) "Instrument" means a negotiable instrument or any other writing that evidences a right to the payment of a monetary obligation, is not itself a security agreement or lease, and is of a type that in ordinary course of business is transferred by delivery with any necessary ((indorsement)) endorsement or assignment. The term does not include (((A))) (i) investment property, (((B))) (ii) letters of credit, (((C))) (iii) writings that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card, (((D))) (iv) writings that do not contain a promise or order to pay, or (((E))) (v) writings that are expressly nontransferable or nonassignable.
     (((48))) (vv) "Inventory" means goods, other than farm products, which:
     (((A))) (i) Are leased by a person as lessor;
     (((B))) (ii) Are held by a person for sale or lease or to be furnished under a contract of service;
     (((C))) (iii) Are furnished by a person under a contract of service; or
     (((D))) (iv) Consist of raw materials, work in process, or materials used or consumed in a business.
     (((49))) (ww) "Investment property" means a security, whether certificated or uncertificated, security entitlement, securities account, commodity contract, or commodity account.
     (((50))) (xx) "Jurisdiction of organization," with respect to a registered organization, means the jurisdiction under whose law the organization is organized.
     (((51))) (yy) "Letter-of-credit right" means a right to payment or performance under a letter of credit, whether or not the beneficiary has demanded or is at the time entitled to demand payment or performance. The term does not include the right of a beneficiary to demand payment or performance under a letter of credit.
     (((52))) (zz) "Lien creditor" means:
     (((A))) (i) A creditor that has acquired a lien on the property involved by attachment, levy, or the like;
     (((B))) (ii) An assignee for benefit of creditors from the time of assignment;
     (((C))) (iii) A trustee in bankruptcy from the date of the filing of the petition; or
     (((D))) (iv) A receiver in equity from the time of appointment.
     (((53))) (aaa) "Manufactured home" means a manufactured home or mobile home as defined in RCW 46.04.302.
     (((54))) (bbb) [Reserved]
     (((55))) (ccc) "Mortgage" means a consensual interest in real property, including fixtures, which secures payment or performance of an obligation.
     (((56))) (ddd) "New debtor" means a person that becomes bound as debtor under RCW 62A.9A-203(d) by a security agreement previously entered into by another person.
     (((57))) (eee) "New value" means (((A))) (i) money, (((B))) (ii) money's worth in property, services, or new credit, or (((C))) (iii) release by a transferee of an interest in property previously transferred to the transferee. The term does not include an obligation substituted for another obligation.
     (((58))) (fff) "Noncash proceeds" means proceeds other than cash proceeds.
     (((59))) (ggg) "Obligor" means a person that, with respect to an obligation secured by a security interest in or an agricultural lien on the collateral, (((A))) (i) owes payment or other performance of the obligation, (((B))) (ii) has provided property other than the collateral to secure payment or other performance of the obligation, or (((C))) (iii) is otherwise accountable in whole or in part for payment or other performance of the obligation. The term does not include issuers or nominated persons under a letter of credit.
     (((60))) (hhh) "Original debtor", except as used in RCW 62A.9A-310(c), means a person that, as debtor, entered into a security agreement to which a new debtor has become bound under RCW 62A.9A-203(d).
     (((61))) (iii) "Payment intangible" means a general intangible under which the account debtor's principal obligation is a monetary obligation.
     (((62))) (jjj) "Person related to," with respect to an individual, means:
     (((A))) (i) The spouse or state-registered domestic partner of the individual;
     (((B))) (ii) A brother, brother-in-law, sister, or sister-in-law of the individual;
     (((C))) (iii) An ancestor or lineal descendant of the individual or the individual's spouse or state-registered domestic partner; or
     (((D))) (iv) Any other relative, by blood or ((marriage)) law, of the individual or the individual's spouse or state-registered domestic partner who shares the same home with the individual.
     (((63))) (kkk) "Person related to," with respect to an organization, means:
     (((A))) (i) A person directly or indirectly controlling, controlled by, or under common control with the organization;
     (((B))) (ii) An officer or director of, or a person performing similar functions with respect to, the organization;
     (((C))) (iii) An officer or director of, or a person performing similar functions with respect to, a person described in (((63)(A))) (kkk)(i) of this subsection;
     (((D))) (iv) The spouse or state-registered domestic partner of an individual described in (((63)(A), (B), or (C))) (kkk)(i), (ii), or (iii) of this subsection; or
     (((E))) (v) An individual who is related by blood or ((marriage)) law to an individual described in (((63)(A), (B), (C), or (D))) (kkk)(i), (ii), (iii), or (iv) of this subsection and shares the same home with the individual.
     (((64))) (lll) "Proceeds", except as used in RCW 62A.9A-609(b), means the following property:
     (((A))) (i) Whatever is acquired upon the sale, lease, license, exchange, or other disposition of collateral;
     (((B))) (ii) Whatever is collected on, or distributed on account of, collateral;
     (((C))) (iii) Rights arising out of collateral;
     (((D))) (iv) To the extent of the value of collateral, claims arising out of the loss, nonconformity, or interference with the use of, defects or infringement of rights in, or damage to, the collateral; or
     (((E))) (v) To the extent of the value of collateral and to the extent payable to the debtor or the secured party, insurance payable by reason of the loss or nonconformity of, defects or infringement of rights in, or damage to, the collateral.
     (((65))) (mmm) "Promissory note" means an instrument that evidences a promise to pay a monetary obligation, does not evidence an order to pay, and does not contain an acknowledgment by a bank that the bank has received for deposit a sum of money or funds.
     (((66))) (nnn) "Proposal" means a record authenticated by a secured party, which includes the terms on which the secured party is willing to accept collateral in full or partial satisfaction of the obligation it secures pursuant to RCW 62A.9A-620, 62A.9A-621, and 62A.9A-622.
     (((67))) (ooo) "Public-finance transaction" means a secured transaction in connection with which:
     (((A))) (i) Debt securities are issued;
     (((B))) (ii) All or a portion of the securities issued have an initial stated maturity of at least twenty years; and
     (((C))) (iii) The debtor, obligor, secured party, account debtor or other person obligated on collateral, assignor or assignee of a secured obligation, or assignor or assignee of a security interest is a state or a governmental unit of a state.
     (((68))) (ppp) "Public organic record" means a record that is available to the public for inspection and is:
     (i) A record consisting of the record initially filed with or issued by a state or the United States to form or organize an organization and any record filed with or issued by the state or the United States which amends or restates the initial record;
     (ii) An organic record of a business trust consisting of the record initially filed with a state and any record filed with the state which amends or restates the initial record, if a statute of the state governing business trusts requires that the record be filed with the state; or
     (iii) A record consisting of legislation enacted by the legislature of a state or the congress of the United States which forms or organizes an organization, any record amending the legislation, and any record filed with or issued by the state or the United States which amends or restates the name of the organization.     
     (qqq) "Pursuant to commitment," with respect to an advance made or other value given by a secured party, means pursuant to the secured party's obligation, whether or not a subsequent event of default or other event not within the secured party's control has relieved or may relieve the secured party from its obligation.
     (((69))) (rrr) "Record," except as used in "for record," "of record," "record or legal title," and "record owner," means information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable form.
     (((70))) (sss) "Registered organization" means an organization formed or organized solely under the law of a single state or the United States ((and as to which the state or the United States must maintain a public record showing the organization to have been organized)) by the filing of a public organic record with, the issuance of a public organic record by, or the enactment of legislation by the state or the United States. The term includes a business trust that is formed or organized under the law of a single state if a statute of the state governing business trusts requires that the business trust's organic record be filed with the state.
     (((71))) (ttt) "Secondary obligor" means an obligor to the extent that:
     (((A))) (i) The obligor's obligation is secondary; or
     (((B))) (ii) The obligor has a right of recourse with respect to an obligation secured by collateral against the debtor, another obligor, or property of either.
     (((72))) (uuu) "Secured party" means:
     (((A))) (i) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;
     (((B))) (ii) A person that holds an agricultural lien;
     (((C))) (iii) A consignor;
     (((D))) (iv) A person to which accounts, chattel paper, payment intangibles, or promissory notes have been sold;
     (((E))) (v) A trustee, indenture trustee, agent, collateral agent, or other representative in whose favor a security interest or agricultural lien is created or provided for; or
     (((F))) (vi) A person that holds a security interest arising under RCW 62A.2-401, 62A.2-505, 62A.2-711(3), 62A.2A-508(5), 62A.4-210, or 62A.5-118.
     (((73))) (vvv) "Security agreement" means an agreement that creates or provides for a security interest.
     (((74))) (www) "Send," in connection with a record or notification, means:
     (((A))) (i) To deposit in the mail, deliver for transmission, or transmit by any other usual means of communication, with postage or cost of transmission provided for, addressed to any address reasonable under the circumstances; or
     (((B))) (ii) To cause the record or notification to be received within the time that it would have been received if properly sent under (((A))) (www)(i) of this subsection.
     (((75))) (xxx) "Software" means a computer program and any supporting information provided in connection with a transaction relating to the program. The term does not include a computer program that is included in the definition of goods.
     (((76))) (yyy) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.
     (((77))) (zzz) "Supporting obligation" means a letter-of-credit right or secondary obligation that supports the payment or performance of an account, chattel paper, a document, a general intangible, an instrument, or investment property.
     (((78))) (aaaa) "Tangible chattel paper" means chattel paper evidenced by a record or records consisting of information that is inscribed on a tangible medium.
     (((79))) (bbbb) "Termination statement" means an amendment of a financing statement which:
     (((A))) (i) Identifies, by its file number, the initial financing statement to which it relates; and
     (((B))) (ii) Indicates either that it is a termination statement or that the identified financing statement is no longer effective.
     (((80))) (cccc) "Transmitting utility" means a person primarily engaged in the business of:
     (((A))) (i) Operating a railroad, subway, street railway, or trolley bus;
     (((B))) (ii) Transmitting communications electrically, electromagnetically, or by light;
     (((C))) (iii) Transmitting goods by pipeline or sewer; or
     (((D))) (iv) Transmitting or producing and transmitting electricity, steam, gas, or water.
     (((b))) (2) Definitions in other Articles. The following definitions in other Articles apply to this Article:

Sec. 102   RCW 62A.9A-105 and 2001 c 32 s 18 are each amended to read as follows:
     (1) General rule: Control of electronic chattel paper. A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned.
     (2) Specific facts giving control. A system satisfies subsection (1) of this section if the record or records comprising the chattel paper are created, stored, and assigned in such a manner that:
     (((1))) (a) A single authoritative copy of the record or records exists which is unique, identifiable and, except as otherwise provided in ((subsections (4), (5), and (6) of this section)) (d), (e), and (f) of this subsection, unalterable;
     (((2))) (b) The authoritative copy identifies the secured party as the assignee of the record or records;
     (((3))) (c) The authoritative copy is communicated to and maintained by the secured party or its designated custodian;
     (((4))) (d) Copies or ((revisions)) amendments that add or change an identified assignee of the authoritative copy can be made only with the ((participation)) consent of the secured party;
     (((5))) (e) Each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy; and
     (((6))) (f) Any ((revision)) amendment of the authoritative copy is readily identifiable as an authorized or unauthorized revision.

Sec. 201   RCW 62A.9A-307 and 2000 c 250 s 9A-307 are each amended to read as follows:
     (((a))) (1) "Place of business." In this section, "place of business" means a place where a debtor conducts its affairs.
     (((b))) (2) Debtor's location: General rules. Except as otherwise provided in this section, the following rules determine a debtor's location:
     (((1))) (a) A debtor who is an individual is located at the individual's principal residence.
     (((2))) (b) A debtor that is an organization and has only one place of business is located at its place of business.
     (((3))) (c) A debtor that is an organization and has more than one place of business is located at its chief executive office.
     (((c))) (3) Limitation of applicability of subsection (2) of this section. Subsection (((b))) (2) of this section applies only if a debtor's residence, place of business, or chief executive office, as applicable, is located in a jurisdiction whose law generally requires information concerning the existence of a nonpossessory security interest to be made generally available in a filing, recording, or registration system as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral. If subsection (((b))) (2) of this section does not apply, the debtor is located in the District of Columbia.
     (((d))) (4) Continuation of location: Cessation of existence, etc. A person that ceases to exist, have a residence, or have a place of business continues to be located in the jurisdiction specified by subsections (((b) and (c))) (2) and (3) of this section.
     (((e))) (5) Location of registered organization organized under state law. A registered organization that is organized under the law of a state is located in that state.
     (((f))) (6) Location of registered organization organized under federal law; bank branches and agencies. Except as otherwise provided in subsection (((i))) (9) of this section, a registered organization that is organized under the law of the United States and a branch or agency of a bank that is not organized under the law of the United States or a state are located:
     (((1))) (a) In the state that the law of the United States designates, if the law designates a state of location;
     (((2))) (b) In the state that the registered organization, branch, or agency designates, if the law of the United States authorizes the registered organization, branch, or agency to designate its state of location, including by designating its main office, home office, or other comparable office; or
     (((3))) (c) In the District of Columbia, if neither (((1) nor (2))) (a) or (b) of this subsection applies.
     (((g))) (7) Continuation of location: Change in status of registered organization. A registered organization continues to be located in the jurisdiction specified by subsection (((e) or (f))) (5) or (6) of this section notwithstanding:
     (((1))) (a) The suspension, revocation, forfeiture, or lapse of the registered organization's status as such in its jurisdiction of organization; or
     (((2))) (b) The dissolution, winding up, or cancellation of the existence of the registered organization.
     (((h))) (8) Location of United States. The United States is located in the District of Columbia.
     (((i))) (9) Location of foreign bank branch or agency if licensed in only one state. A branch or agency of a bank that is not organized under the law of the United States or a state is located in the state in which the branch or agency is licensed, if all branches and agencies of the bank are licensed in only one state.
     (((j))) (10) Location of foreign air carrier. A foreign air carrier under the Federal Aviation Act of 1958, as amended, is located at the designated office of the agent upon which service of process may be made on behalf of the carrier.
     (((k))) (11) Section applies only to this part. This section applies only for purposes of this part.

Sec. 202   RCW 62A.9A-311 and 2010 c 161 s 1151 are each amended to read as follows:
     (((a))) (1) Security interest subject to other law. Except as otherwise provided in subsection (((d))) (4) of this section, the filing of a financing statement is not necessary or effective to perfect a security interest in property subject to:
     (((1))) (a) A statute, regulation, or treaty of the United States whose requirements for a security interest's obtaining priority over the rights of a lien creditor with respect to the property preempt RCW 62A.9A-310(a);
     (((2))) (b) RCW 46.12.675 or 88.02.520, or chapter 65.12 RCW; or
     (((3))) (c) A ((certificate-of-title)) statute of another jurisdiction which provides for a security interest to be indicated on ((the)) a certificate of title as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the property.
     (((b))) (2) Compliance with other law. Compliance with the requirements of a statute, regulation, or treaty described in subsection (((a))) (1) of this section for obtaining priority over the rights of a lien creditor is equivalent to the filing of a financing statement under this Article. Except as otherwise provided in subsection (((d))) (4) of this section, RCW 62A.9A-313, and 62A.9A-316 (((d) and (e))) (4) and (5) for goods covered by a certificate of title, a security interest in property subject to a statute, regulation, or treaty described in subsection (((a))) (1) of this section may be perfected only by compliance with those requirements, and a security interest so perfected remains perfected notwithstanding a change in the use or transfer of possession of the collateral.
     (((c))) (3) Duration and renewal of perfection. Except as otherwise provided in subsection (((d))) (4) of this section and RCW 62A.9A-316 (((d) and (e))) (4) and (5), duration and renewal of perfection of a security interest perfected by compliance with the requirements prescribed by a statute, regulation, or treaty described in subsection (((a))) (1) of this section are governed by the statute, regulation, or treaty. In other respects, the security interest is subject to this Article.
     (((d))) (4) Inapplicability to certain inventory. During any period in which collateral subject to RCW ((46.12.095)) 46.12.675 or 88.02.520, or chapter 65.12 RCW is inventory held for sale or lease by a person or leased by that person as lessor and that person is in the business of selling goods of that kind, this section does not apply to a security interest in that collateral created by that person.

Sec. 203   RCW 62A.9A-316 and 2000 c 250 s 9A-316 are each amended to read as follows:
     (((a))) (1) General rule: Effect on perfection of change in governing law. A security interest perfected pursuant to the law of the jurisdiction designated in RCW 62A.9A-301(1) or 62A.9A-305(c) remains perfected until the earliest of:
     (((1))) (a) The time perfection would have ceased under the law of that jurisdiction;
     (((2))) (b) The expiration of four months after a change of the debtor's location to another jurisdiction; or
     (((3))) (c) The expiration of one year after a transfer of collateral to a person that thereby becomes a debtor and is located in another jurisdiction.
     (((b))) (2) Security interest perfected or unperfected under law of new jurisdiction. If a security interest described in subsection (((a))) (1) of this section becomes perfected under the law of the other jurisdiction before the earliest time or event described in subsection (((a))) (1) of this section, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earliest time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.
     (((c))) (3) Possessory security interest in collateral moved to new jurisdiction. A possessory security interest in collateral, other than goods covered by a certificate of title and as-extracted collateral consisting of goods, remains continuously perfected if:
     (((1))) (a) The collateral is located in one jurisdiction and subject to a security interest perfected under the law of that jurisdiction;
     (((2))) (b) Thereafter the collateral is brought into another jurisdiction; and
     (((3))) (c) Upon entry into the other jurisdiction, the security interest is perfected under the law of the other jurisdiction.
     (((d))) (4) Goods covered by certificate of title from this state. Except as otherwise provided in subsection (((e))) (5) of this section, a security interest in goods covered by a certificate of title which is perfected by any method under the law of another jurisdiction when the goods become covered by a certificate of title from this state remains perfected until the security interest would have become unperfected under the law of the other jurisdiction had the goods not become so covered.
     (((e))) (5) When subsection (((d))) (4) security interest becomes unperfected against purchasers. A security interest described in subsection (((d))) (4) of this section becomes unperfected as against a purchaser of the goods for value and is deemed never to have been perfected as against a purchaser of the goods for value if the applicable requirements for perfection under RCW 62A.9A-311(((b))) (2) or 62A.9A-313 are not satisfied before the earlier of:
     (((1))) (a) The time the security interest would have become unperfected under the law of the other jurisdiction had the goods not become covered by a certificate of title from this state; or
     (((2))) (b) The expiration of four months after the goods had become so covered.
     (((f))) (6) Change in jurisdiction of bank, issuer, nominated person, securities intermediary, or commodity intermediary. A security interest in deposit accounts, letter-of-credit rights, or investment property which is perfected under the law of the bank's jurisdiction, the issuer's jurisdiction, a nominated person's jurisdiction, the securities intermediary's jurisdiction, or the commodity intermediary's jurisdiction, as applicable, remains perfected until the earlier of:
     (((1))) (a) The time the security interest would have become unperfected under the law of that jurisdiction; or
     (((2))) (b) The expiration of four months after a change of the applicable jurisdiction to another jurisdiction.
     (((g))) (7) Subsection (((f))) (6) of this section security interest perfected or unperfected under law of new jurisdiction. If a security interest described in subsection (((f))) (6) of this section becomes perfected under the law of the other jurisdiction before the earlier of the time or the end of the period described in subsection (((f))) (6) of this section, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier of that time or the end of that period, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.
     (8) Effect on filed financing statement of change in governing law. The following rules apply to collateral to which a security interest attaches within four months after the debtor changes its location to another jurisdiction:
     (a) A financing statement filed before the change pursuant to the law of the jurisdiction designated in RCW 62A.9A-301(1) or 62A.9A-305(c) is effective to perfect a security interest in the collateral if the financing statement would have been effective to perfect a security interest in the collateral had the debtor not changed its location.
     (b) If a security interest perfected by a financing statement that is effective under (a) of this subsection (8) becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in RCW 62A.9A-301(1) or 62A.9A-305(c) or the expiration of the four-month period, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.
     (9) Effect of change in governing law on financing statement filed against original debtor. If a financing statement naming an original debtor is filed pursuant to the law of the jurisdiction designated in RCW 62A.9A-301(1) or 62A.9A-305(c) and the new debtor is located in another jurisdiction, the following rules apply:
     (a) The financing statement is effective to perfect a security interest in collateral acquired by the new debtor before, and within four months after, the new debtor becomes bound under RCW 62A.-9A-203(d), if the financing statement would have been effective to perfect a security interest in the collateral had the collateral been acquired by the original debtor.
     (b) A security interest perfected by the financing statement and which becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in RCW 62A.9A-301(1) or 62A.9A-305(c) or the expiration of the four-month period remains perfected thereafter. A security interest that is perfected by the financing statement but which does not become perfected under the law of the other jurisdiction before the earlier time or event becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.

Sec. 204   RCW 62A.9A-317 and 2001 c 32 s 27 are each amended to read as follows:
     (((a))) (1) Conflicting security interests and rights of lien creditors. A security interest or agricultural lien is subordinate to the rights of:
     (((1))) (a) A person entitled to priority under RCW 62A.9A-322; and
     (((2))) (b) Except as otherwise provided in subsection (((e))) (5) of this section, a person that becomes a lien creditor before the earlier of the time:
     (((A))) (i) The security interest or agricultural lien is perfected; or
     (((B))) (ii) One of the conditions specified in RCW 62A.9A-203(b)(3) is met and a financing statement covering the collateral is filed.
     (((b))) (2) Buyers that receive delivery. Except as otherwise provided in subsection (((e))) (5) of this section, a buyer, other than a secured party, of tangible chattel paper, documents, goods, instruments, or a ((security certificate)) certified security takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
     (((c))) (3) Lessees that receive delivery. Except as otherwise provided in subsection (((e))) (5) of this section, a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
     (((d))) (4) Licensees and buyers of certain collateral. A licensee of a general intangible or a buyer, other than a secured party, of ((accounts, electronic chattel paper, general intangibles, or investment property)) collateral other than tangible chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.
     (((e))) (5) Purchase-money security interest. Except as otherwise provided in RCW 62A.9A-320 and 62A.9A-321, if a person files a financing statement with respect to a purchase-money security interest before or within twenty days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor which arise between the time the security interest attaches and the time of filing.

Sec. 205   RCW 62A.9A-326 and 2000 c 250 s 9A-326 are each amended to read as follows:
     (((a))) (1) Subordination of security interest created by new debtor. Subject to subsection (((b))) (2) of this section, a security interest that is created by a new debtor ((which is)) in collateral in which the new debtor has or acquires rights and is perfected solely by a filed financing statement that ((is effective solely under RCW 62A.9A-508 in collateral in which a new debtor has or acquires rights)) would be ineffective to perfect the security interest but for the application of RCW 62A.9A-316(9)(a) or 62A.9A-508 is subordinate to a security interest in the same collateral which is perfected other than by such a filed financing statement ((that is effective solely under RCW 62A.9A-508)).
     (((b))) (2) Priority under other provisions; multiple original debtors. The other provisions of this part determine the priority among conflicting security interests in the same collateral perfected by filed financing statements ((that are effective solely under RCW 62A.9A-508)) described in subsection (1) of this section. However, if the security agreements to which a new debtor became bound as debtor were not entered into by the same original debtor, the conflicting security interests rank according to priority in time of the new debtor's having become bound.

Sec. 301   RCW 62A.9A-406 and 2003 c 87 s 1 are each amended to read as follows:
     (((a))) (1) Discharge of account debtor; effect of notification. Subject to subsections (((b))) (2) through (((j))) (10) of this section, an account debtor on an account, chattel paper, or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, authenticated by the assignor or the assignee, that the amount due or to become due has been assigned and that payment is to be made to the assignee. After receipt of the notification, the account debtor may discharge its obligation by paying the assignee and may not discharge the obligation by paying the assignor.
     (((b))) (2) When notification ineffective. Subject to subsection (((h))) (8) of this section, notification is ineffective under subsection (((a))) (1) of this section:
     (((1))) (a) If it does not reasonably identify the rights assigned;
     (((2))) (b) To the extent that an agreement between an account debtor and a seller of a payment intangible limits the account debtor's duty to pay a person other than the seller and the limitation is effective under law other than this Article; or
     (((3))) (c) At the option of an account debtor, if the notification notifies the account debtor to make less than the full amount of any installment or other periodic payment to the assignee, even if:
     (((A))) (i) Only a portion of the account, chattel paper, or payment intangible has been assigned to that assignee;
     (((B))) (ii) A portion has been assigned to another assignee; or
     (((C))) (iii) The account debtor knows that the assignment to that assignee is limited.
     (((c))) (3) Proof of assignment. Subject to subsection (((h))) (8) of this section, if requested by the account debtor, an assignee shall seasonably furnish reasonable proof that the assignment has been made. Unless the assignee complies, the account debtor may discharge its obligation by paying the assignor, even if the account debtor has received a notification under subsection (((a))) (1) of this section.
     (((d))) (4) Term restricting assignment generally ineffective. Except as otherwise provided in subsection (((e))) (5) of this section and RCW 62A.2A-303 and 62A.9A-407, and subject to subsections (((h))) (8) and (((j))) (10) of this section, a term in an agreement between an account debtor and an assignor or in a promissory note is ineffective to the extent that it:
     (((1))) (a) Prohibits, restricts, or requires the consent of the account debtor or person obligated on the promissory note to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, the account, chattel paper, payment intangible, or promissory note; or
     (((2))) (b) Provides that the assignment or transfer or the creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the account, chattel paper, payment intangible, or promissory note.
     (((e))) (5) Inapplicability of subsection (((d))) (4) of this section to certain sales. Subsection (((d))) (4) of this section does not apply to the sale of a payment intangible or promissory note, other than a sale pursuant to a disposition under RCW 62A.9A-610 or an acceptance of collateral under RCW 62A.9A-620.
     (((f))) (6) [Reserved]
     (((g))) (7) Subsection (((b)(3))) (2)(c) of this section not waivable. Subject to subsection (((h))) (8) of this section, an account debtor may not waive or vary its option under subsection (((b)(3))) (2)(c) of this section.
     (((h))) (8) Rule for individual under other law. This section is subject to law other than this Article which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.
     (((i))) (9) Inapplicability to health-care-insurance receivable. This section does not apply to an assignment of a health-care-insurance receivable.
     (((j)(1))) (10)(a) Inapplicability of subsection (((d))) (4) of this section to certain transactions. After July 1, 2003, subsection (((d))) (4) of this section does not apply to the assignment or transfer of or creation of a security interest in:
     (((A))) (i) A claim or right to receive compensation for injuries or sickness as described in 26 U.S.C. Sec. 104(a)(1) or (2); or
     (((B))) (ii) A claim or right to receive benefits under a special needs trust as described in 42 U.S.C. Sec. 1396p(d)(4).
     (((2))) (b) This subsection will not affect a transfer of structured settlement payment rights under chapter 19.205 RCW.

Sec. 302   RCW 62A.9A-408 and 2003 c 87 s 2 are each amended to read as follows:
     (((a))) (1) Term restricting assignment generally ineffective. Except as otherwise provided in subsection (((b))) (2) of this section, a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health-care-insurance receivable or a general intangible, including a contract, permit, license, or franchise, and which term prohibits, restricts, or requires the consent of the person obligated on the promissory note or the account debtor to, the assignment or transfer of, or creation, attachment, or perfection of a security interest in, the promissory note, health-care-insurance receivable, or general intangible, is ineffective to the extent that the term:
     (((1))) (a) Would impair the creation, attachment, or perfection of a security interest; or
     (((2))) (b) Provides that the assignment or transfer or the creation, attachment, or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the promissory note, health-care-insurance receivable, or general intangible.
     (((b))) (2) Applicability of subsection (((a))) (1) of this section to sales of certain rights to payment. Subsection (((a))) (1) of this section applies to a security interest in a payment intangible or promissory note only if the security interest arises out of a sale of the payment intangible or promissory note, other than a sale pursuant to a disposition under RCW 62A.9A-610 or an acceptance of collateral under RCW 62A.9A-620.
     (((c))) (3) Legal restrictions on assignment generally ineffective. A rule of law, statute, or regulation that prohibits, restricts, or requires the consent of a government, governmental body or official, person obligated on a promissory note, or account debtor to the assignment or transfer of, or creation of a security interest in, a promissory note, health-care-insurance receivable, or general intangible, including a contract, permit, license, or franchise between an account debtor and a debtor, is ineffective to the extent that the rule of law, statute, or regulation:
     (((1))) (a) Would impair the creation, attachment, or perfection of a security interest; or
     (((2))) (b) Provides that the assignment or transfer or the creation, attachment, or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the promissory note, health-care-insurance receivable, or general intangible.
     (((d))) (4) Limitation on ineffectiveness under subsections (((a))) (1) and (((c))) (3) of this section. To the extent that a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health-care-insurance receivable or general intangible or a rule of law, statute, or regulation described in subsection (((c))) (3) of this section would be effective under law other than this Article but is ineffective under subsection (((a))) (1) or (((c))) (3) of this section, the creation, attachment, or perfection of a security interest in the promissory note, health-care-insurance receivable, or general intangible:
     (((1))) (a) Is not enforceable against the person obligated on the promissory note or the account debtor;
     (((2))) (b) Does not impose a duty or obligation on the person obligated on the promissory note or the account debtor;
     (((3))) (c) Does not require the person obligated on the promissory note or the account debtor to recognize the security interest, pay or render performance to the secured party, or accept payment or performance from the secured party;
     (((4))) (d) Does not entitle the secured party to use or assign the debtor's rights under the promissory note, health-care-insurance receivable, or general intangible, including any related information or materials furnished to the debtor in the transaction giving rise to the promissory note, health-care-insurance receivable, or general intangible;
     (((5))) (e) Does not entitle the secured party to use, assign, possess, or have access to any trade secrets or confidential information of the person obligated on the promissory note or the account debtor; and
     (((6))) (f) Does not entitle the secured party to enforce the security interest in the promissory note, health-care-insurance receivable, or general intangible.
     (((e)(1))) (5)(a) Inapplicability of subsections (((a))) (1) and (((c))) (3) of this section to certain payment intangibles. After July 1, 2003, subsections (((a))) (1) and (((c))) (3) of this section do not apply to the assignment or transfer of or creation of a security interest in:
     (((A))) (i) A claim or right to receive compensation for injuries or sickness as described in 26 U.S.C. Sec. 104(a)(1) or (2); or
     (((B))) (ii) A claim or right to receive benefits under a special needs trust as described in 42 U.S.C. Sec. 1396p(d)(4).
     (((2))) (b) This subsection will not affect a transfer of structured settlement payment rights under chapter 19.205 RCW.

Sec. 401   RCW 62A.9A-503 and 2000 c 250 s 9A-503 are each amended to read as follows:
     (((a))) (1) Sufficiency of debtor's name. A financing statement sufficiently provides the name of the debtor:
     (((1))) (a) Except as otherwise provided in (c) of this subsection (1), if the debtor is a registered organization or the collateral is held in a trust that is a registered organization, only if the financing statement provides the name ((of the debtor indicated)) that is stated to be the registered organization's name on the public organic record ((of)) most recently filed with or issued or enacted by the ((debtor's)) registered organization's jurisdiction of organization which ((shows the debtor to have been organized;
     (2) If the debtor is a decedent's estate)) purports to state, amend, or restate the registered organization's name;
     (b) Subject to subsection (6) of this section, if the collateral is being administered by the personal representative of a decedent, only if the financing statement provides, as the name of the debtor, the name of the decedent and, in a separate part of the financing statement, indicates that the ((debtor is an estate;
     (3) If the debtor is a trust or a trustee acting with respect to property held in trust, only if the financing statement:
     (A) Provides the name specified for the trust in its organic documents or, if no name is specified, provides the name of the settlor and additional information sufficient to distinguish the debtor from other trusts having one or more of the same settlors; and
     (B) Indicates, in the debtor's name or otherwise, that the debtor is a trust or is a trustee acting with respect to property held in trust; and
     (4))) collateral is being administered by a personal representative;
     (c) If the collateral is held in a trust that is not a registered organization, only if the financing statement:
     (i) Provides, as the name of the debtor:
     (A) If the organic record of the trust specifies a name for the trust, the name specified; or
     (B) If the organic record of the trust does not specify a name for the trust, the name of the settlor or testator; and
     (ii) In a separate part of the financing statement:
     (A) If the name is provided in accordance with (c)(i)(A) of this subsection, indicates that the collateral is held in a trust; or
     (B) If the name is provided in accordance with (c)(i)(B) of this subsection, provides additional information sufficient to distinguish the trust from other trusts having one or more of the same settlors or the same testator and indicates that the collateral is held in a trust, unless the additional information so indicates;
     (d) If the debtor is an individual, only if the financing statement:
     (i) Provides the individual name of the debtor;
     (ii) Provides the surname and first personal name of the debtor; or
     (iii) Subject to subsection (7) of this section, provides the name of the individual which is indicated on a driver's license or identification card that this state has issued to the individual and which has not expired; and
     (e) In other cases:
     (((A))) (i) If the debtor has a name, only if ((it)) the financing statement provides the ((individual or)) organizational name of the debtor; and
     (((B))) (ii) If the debtor does not have a name, only if ((it)) the financing statement provides the names of the partners, members, associates, or other persons comprising the debtor, in a manner that each name provided would be sufficient if the person named were the debtor.
     (((b))) (2) Additional debtor-related information. A financing statement that provides the name of the debtor in accordance with subsection (((a))) (1) of this section is not rendered ineffective by the absence of:
     (((1))) (a) A trade name or other name of the debtor; or
     (((2))) (b) Unless required under subsection (((a)(4)(B))) (1)(e)(ii) of this section, names of partners, members, associates, or other persons comprising the debtor.
     (((c))) (3) Debtor's trade name insufficient. A financing statement that provides only the debtor's trade name does not sufficiently provide the name of the debtor.
     (((d))) (4) Representative capacity. Failure to indicate the representative capacity of a secured party or representative of a secured party does not affect the sufficiency of a financing statement.
     (((e))) (5) Multiple debtors and secured parties. A financing statement may provide the name of more than one debtor and the name of more than one secured party.
     (6) Name of decedent. The name of the decedent indicated on the order appointing the personal representative of the decedent issued by the court having jurisdiction over the collateral is sufficient as the "name of the decedent" under subsection (1)(b) of this section.
     (7) Multiple driver's licenses. If this state has issued to an individual more than one driver's license or identification card of a kind described in subsection (1)(d) of this section, the one that was issued most recently is the one to which subsection (1)(d) of this section refers.
     (8) Definition. In this section, the "name of the settlor or testator" means:
     (a) If the settlor is a registered organization, the name that is stated to be the settlor's name on the public organic record most recently filed with or issued or enacted by the settlor's jurisdiction of organization which purports to state, amend, or restate the settlor's name; or
     (b) In other cases, the name of the settlor or testator indicated in the trust's organic record.

Sec. 402   RCW 62A.9A-507 and 2000 c 250 s 9A-507 are each amended to read as follows:
     (((a))) (1) Disposition. A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed, or otherwise disposed of and in which a security interest or agricultural lien continues, even if the secured party knows of or consents to the disposition.
     (((b))) (2) Information becoming seriously misleading. Except as otherwise provided in subsection (((c))) (3) of this section and RCW 62A.9A-508, a financing statement is not rendered ineffective if, after the financing statement is filed, the information provided in the financing statement becomes seriously misleading under RCW 62A.9A-506.
     (((c))) (3) Change in debtor's name. If ((a debtor so changes its)) the name that a filed financing statement provides for a debtor becomes insufficient as the name of the debtor under RCW 62A.9A-503(1) so that the financing statement becomes seriously misleading under RCW 62A.9A-506:
     (((1))) (a) The financing statement is effective to perfect a security interest in collateral acquired by the debtor before, or within four months after, the ((change)) filed financing statement becomes seriously misleading; and
     (((2))) (b) The financing statement is not effective to perfect a security interest in collateral acquired by the debtor more than four months after the ((change)) filed financing statement becomes seriously misleading, unless an amendment to the financing statement which renders the financing statement not seriously misleading is filed within four months after the ((change)) filed financing statement becomes seriously misleading.

Sec. 403   RCW 62A.9A-515 and 2000 c 250 s 9A-515 are each amended to read as follows:
     (((a))) (1) Five-year effectiveness. Except as otherwise provided in subsections (((b), (e), (f), and (g))) (2), (5), (6), and (7) of this section, a filed financing statement is effective for a period of five years after the date of filing.
     (((b))) (2) [Reserved]
     (((c))) (3) Lapse and continuation of financing statement. The effectiveness of a filed financing statement lapses on the expiration of the period of its effectiveness unless before the lapse a continuation statement is filed pursuant to subsection (((d))) (4) of this section. Upon lapse, a financing statement ceases to be effective and any security interest or agricultural lien that was perfected by the financing statement becomes unperfected, unless the security interest is perfected otherwise. If the security interest or agricultural lien becomes unperfected upon lapse, it is deemed never to have been perfected as against a purchaser of the collateral for value.
     (((d))) (4) When continuation statement may be filed. A continuation statement may be filed only within six months before the expiration of the five-year period specified in subsection (((a))) (1) of this section or the thirty-year period specified in subsection (((b))) (2) of this section, whichever is applicable.
     (((e))) (5) Effect of filing continuation statement. Except as otherwise provided in RCW 62A.9A-510, upon timely filing of a continuation statement, the effectiveness of the initial financing statement continues for a period of five years commencing on the day on which the financing statement would have become ineffective in the absence of the filing. Upon the expiration of the five-year period, the financing statement lapses in the same manner as provided in subsection (((c))) (3) of this section, unless, before the lapse, another continuation statement is filed pursuant to subsection (((d))) (4) of this section. Succeeding continuation statements may be filed in the same manner to continue the effectiveness of the initial financing statement.
     (((f))) (6) Transmitting utility financing statement. If a debtor is a transmitting utility and a filed initial financing statement so indicates, the financing statement is effective until a termination statement is filed.
     (((g))) (7) Record of mortgage as financing statement. A record of a mortgage that is effective as a financing statement filed as a fixture filing under RCW 62A.9A-502(c) remains effective as a financing statement filed as a fixture filing until the mortgage is released or satisfied of record or its effectiveness otherwise terminates as to the real property.

Sec. 404   RCW 62A.9A-516 and 2001 c 32 s 38 are each amended to read as follows:
     (((a))) (1) What constitutes filing. Except as otherwise provided in subsection (((b))) (2) of this section, communication of a record to a filing office and tender of the filing fee or acceptance of the record by the filing office constitutes filing.
     (((b))) (2) Refusal to accept record; filing does not occur. Filing does not occur with respect to a record that a filing office refuses to accept because:
     (((1))) (a) The record is not communicated by a method or medium of communication authorized by the filing office;
     (((2))) (b) An amount equal to or greater than the applicable filing fee is not tendered or, in the case of a filing office described in RCW 62A.9A-501(a)(1), an amount equal to the applicable filing fee is not tendered;
     (((3))) (c) The filing office is unable to index the record because:
     (((A))) (i) In the case of an initial financing statement, the record does not provide a name for the debtor;
     (((B))) (ii) In the case of an amendment or correction statement, the record:
     (((i))) (A) Does not identify the initial financing statement as required by RCW 62A.9A-512 or 62A.9A-518, as applicable; or
     (((ii))) (B) Identifies an initial financing statement whose effectiveness has lapsed under RCW 62A.9A-515;
     (((C))) (iii) In the case of an initial financing statement that provides the name of a debtor identified as an individual or an amendment that provides a name of a debtor identified as an individual which was not previously provided in the financing statement to which the record relates, the record does not identify the debtor's ((last name)) surname; or
     (((D))) (iv) In the case of a record filed or recorded in the filing office described in RCW 62A.9A-501(a)(1), the record does not provide a name for the debtor or a sufficient description of the real property to which the record relates;
     (((4))) (d) In the case of an initial financing statement or an amendment that adds a secured party of record, the record does not provide a name and mailing address for the secured party of record;
     (((5))) (e) In the case of an initial financing statement or an amendment that provides a name of a debtor which was not previously provided in the financing statement to which the amendment relates, the record does not:
     (((A))) (i) Provide a mailing address for the debtor; or
     (((B))) (ii) Indicate whether the name provided as the name of the debtor is the name of an individual or an organization; ((or
     (C) If the financing statement indicates that the debtor is an organization, provide:
     (i) A type of organization for the debtor;
     (ii) A jurisdiction of organization for the debtor; or
     (iii) An organizational identification number for the debtor or indicate that the debtor has none;
     (6))) (f) In the case of an assignment reflected in an initial financing statement under RCW 62A.9A-514(a) or an amendment filed under RCW 62A.9A-514(b), the record does not provide a name and mailing address for the assignee; or
     (((7))) (g) In the case of a continuation statement, the record is not filed within the six-month period prescribed by RCW 62A.9A-515(((d))) (4).
     (((c))) (3) Rules applicable to subsection (((b))) (2) of this section. For purposes of subsection (((b))) (2) of this section:
     (((1))) (a) A record does not provide information if the filing office is unable to read or decipher the information; and
     (((2))) (b) A record that does not indicate that it is an amendment or identify an initial financing statement to which it relates, as required by RCW 62A.9A-512, 62A.9A-514, or 62A.9A-518, is an initial financing statement.
     (((d))) (4) Refusal to accept record; record effective as filed record. A record that is communicated to the filing office with tender of the filing fee, but which the filing office refuses to accept for a reason other than one set forth in subsection (((b))) (2) of this section, is effective as a filed record except as against a purchaser of the collateral which gives value in reasonable reliance upon the absence of the record from the files.

Sec. 405   RCW 62A.9A-518 and 2000 c 250 s 9A-518 are each amended to read as follows:
     (((a) Correction statement.)) (1) Statement with respect to record indexed under person's name. A person may file in the filing office ((a correction)) an information statement with respect to a record indexed there under the person's name if the person believes that the record is inaccurate or was wrongfully filed.
     (((b) Sufficiency of correction statement. A correction)) (2) Contents of statement under subsection (1) of this section. An information statement under subsection (1) of this section must:
     (((1))) (a) Identify the record to which it relates by the file number assigned to the initial financing statement to which the record relates;
     (((2))) (b) Indicate that it is ((a correction)) an information statement; and
     (((3))) (c) Provide the basis for the person's belief that the record is inaccurate and indicate the manner in which the person believes the record should be amended to cure any inaccuracy or provide the basis for the person's belief that the record was wrongfully filed.
     (3) Statement by secured party of record. A person may file in the filing office an information statement with respect to a record filed there if the person is a secured party of record with respect to the financing statement to which the record relates and believes that the person that filed the record was not entitled to do so under RCW 62A.9A-509(d).
     (4) Contents of statement under subsection (5) of this section. An information statement under subsection (3) of this section must:
     (a) Identify the record to which it relates by the file number assigned to the initial financing statement to which the record relates;
     (b) Indicate that it is an information statement; and
     (c) Provide the basis for the person's belief that the person that filed the record was not entitled to do so under RCW 62A.9A-509(d).
     (((c))) (5) Record not affected by ((correction)) information statement. The filing of ((a correction)) an information statement does not affect the effectiveness of an initial financing statement or other filed record.

Sec. 406   RCW 62A.9A-521 and 2000 c 250 s 9A-521 are each amended to read as follows:
     (((a))) (1) Initial financing statement form. A filing office that accepts written records may not refuse to accept a written initial financing statement in the following form and format except for a reason set forth in RCW 62A.9A-516(((b))) (2):

NEW SECTION.  Sec. 501   (1) Preeffective date transactions or liens. Except as otherwise provided in this section or sections 502 through 508 of this act, this act applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before the effective date of this section.
     (2) Preeffective date proceedings. This act does not affect an action, case, or proceeding commenced before the effective date of this section.

NEW SECTION.  Sec. 502   A new section is added to chapter 62A.9A RCW to be codified as RCW 62A.9A-803 to read as follows:
     SECURITY INTEREST PERFECTED BEFORE EFFECTIVE DATE. (1) Continuing perfection: Perfection requirements satisfied. A security interest that is a perfected security interest immediately before the effective date of this section is a perfected security interest under chapter 62A.9A RCW if, on the effective date of this section, the applicable requirements for attachment and perfection under chapter 62A.9A RCW as of the effective date of this section are satisfied without further action.
     (2) Continuing perfection: Perfection requirements not satisfied. Except as otherwise provided in section 504 of this act, if, immediately before the effective date of this section, a security interest is a perfected security interest, but the applicable requirements for perfection under chapter 62A.9A RCW as of the effective date of this section are not satisfied when this section takes effect, the security interest remains perfected thereafter only if the applicable requirements for perfection under chapter 62A.9A RCW as of the effective date of this section are satisfied within one year after the effective date of this section.

NEW SECTION.  Sec. 503   A new section is added to chapter 62A.9A RCW to be codified as RCW 62A.9A-804 to read as follows:
     SECURITY INTEREST UNPERFECTED BEFORE EFFECTIVE DATE. A security interest that is an unperfected security interest immediately before the effective date of this section becomes a perfected security interest:
     (1) Without further action, on the effective date of this section if the applicable requirements for perfection under chapter 62A.9A RCW are satisfied before or at that time; or
     (2) When the applicable requirements for perfection are satisfied if the requirements are satisfied after that time.

NEW SECTION.  Sec. 504   A new section is added to chapter 62A.9A RCW to be codified as RCW 62A.9A-805 to read as follows:
     EFFECTIVENESS OF ACTION TAKEN BEFORE EFFECTIVE DATE. (1) Preeffective date filing effective. The filing of a financing statement before the effective date of this section is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under chapter 62A.9A RCW as of the effective date of this section.
     (2) When preeffective date filing becomes ineffective. This act does not render ineffective an effective financing statement that, before the effective date of this section, is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in chapter 62A.9A RCW as it existed before the effective date of this section. However, except as otherwise provided in subsections (3) and (4) of this section and section 505 of this act, the financing statement ceases to be effective:
     (a) If the financing statement is filed in this state, at the time the financing statement would have ceased to be effective had this section not taken effect; or
     (b) If the financing statement is filed in another jurisdiction, at the earlier of:
     (i) The time the financing statement would have ceased to be effective under the law of that jurisdiction; or
     (ii) June 30, 2018.
     (3) Continuation statement. The filing of a continuation statement after the effective date of this section does not continue the effectiveness of a financing statement filed before the effective date of this section. However, upon the timely filing of a continuation statement after the effective date of this section and in accordance with the law of the jurisdiction governing perfection as provided in chapter 62A.9A RCW as of the effective date of this section, the effectiveness of a financing statement filed in the same office in that jurisdiction before the effective date of this section continues for the period provided by the law of that jurisdiction.
     (4) Application of subsection (2)(b)(ii) to transmitting utility financing statement. Subsection (2)(b)(ii) of this section applies to a financing statement that, before the effective date of this section, is filed against a transmitting utility and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in chapter 62A.9A RCW as it existed before the effective date of this section, only to the extent that chapter 62A.9A RCW as of the effective date of this section provides that the law of a jurisdiction other than the jurisdiction in which the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement.
     (5) Application of Part 4. A financing statement that includes a financing statement filed before the effective date of this section and a continuation statement filed after the effective date of this section is effective only to the extent that it satisfies the requirements of RCW 62A.9A-502, 62A.9A-503, 62A.9A-507, 62A.9A-515, 62A.9A-516, 62A.9A-518, 62A.9A-521 as of the effective date of this section, for an initial financing statement. A financing statement that indicates that the debtor is a decedent's estate indicates that the collateral is being administered by a personal representative within the meaning of RCW 62A.9A-503(1)(b) as of the effective date of this section. A financing statement that indicates that the debtor is a trust or is a trustee acting with respect to property held in trust indicates that the collateral is held in a trust within the meaning of RCW 62A.9A-503(1)(c) as of the effective date of this section.

NEW SECTION.  Sec. 505   A new section is added to chapter 62A.9A RCW to be codified as RCW 62A.9A-806 to read as follows:
     WHEN INITIAL FINANCING STATEMENT SUFFICES TO CONTINUE EFFECTIVENESS OF FINANCING STATEMENT. (1) Initial financing statement in lieu of continuation statement. The filing of an initial financing statement in the office specified in RCW 62A.9A-501 continues the effectiveness of a financing statement filed before the effective date of this section if:
     (a) The filing of an initial financing statement in that office would be effective to perfect a security interest under chapter 62A.9A RCW as of the effective date of this section;
     (b) The preeffective date financing statement was filed in an office in another state; and
     (c) The initial financing statement satisfies subsection (3) of this section.
     (2) Period of continued effectiveness. The filing of an initial financing statement under subsection (1) of this section continues the effectiveness of the preeffective date financing statement:
     (a) If the initial financing statement is filed before the effective date of this section, for the period provided in RCW 62A.9A-515, as it existed before the effective date of this section with respect to an initial financing statement; and
     (b) If the initial financing statement is filed after the effective date of this section, for the period provided in RCW 62A.9A-515 as of the effective date of this section with respect to an initial financing statement.
     (3) Requirements for initial financing statement under subsection (1) of this section. To be effective for purposes of subsection (1) of this section, an initial financing statement must:
     (a) Beginning the effective date of this section, satisfy the requirements of RCW 62A.9A-502, 62A.9A-503, 62A.9A-507, 62A.9A-515, 62A.9A-516, 62A.9A-518, 62A.9A-521 for an initial financing statement;
     (b) Identify the preeffective date financing statement by indicating the office in which the financing statement was filed and providing the dates of filing and file numbers, if any, of the financing statement and of the most recent continuation statement filed with respect to the financing statement; and
     (c) Indicate that the preeffective date financing statement remains effective.

NEW SECTION.  Sec. 506   A new section is added to chapter 62A.9A RCW to be codified as RCW 62A.9A-807 to read as follows:
     AMENDMENT OF PREEFFECTIVE DATE FINANCING STATEMENT. (1) "Preeffective date financing statement." For the purposes of this section, "preeffective date financing statement" means a financing statement filed before the effective date of this section.
     (2) Applicable law. After the effective date of this section, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or otherwise amend the information provided in, a preeffective date financing statement only in accordance with the law of the jurisdiction governing perfection as provided in chapter 62A.9A RCW as of the effective date of this section. However, the effectiveness of a preeffective date financing statement also may be terminated in accordance with the law of the jurisdiction in which the financing statement is filed.
     (3) Method of amending: General rule. Except as otherwise provided in subsection (4) of this section, if the law of this state governs perfection of a security interest, the information in a preeffective date financing statement may be amended after the effective date of this section only if:
     (a) The preeffective date financing statement and an amendment are filed in the office specified in RCW 62A.9A-501;
     (b) An amendment is filed in the office specified in RCW 62A.9A-501 concurrently with, or after the filing in that office of, an initial financing statement that satisfies section 505(3) of this act; or
     (c) An initial financing statement that provides the information as amended and satisfies section 505(3) of this act is filed in the office specified in RCW 62A.9A-501.
     (4) Method of amending: Continuation. If the law of this state governs perfection of a security interest, the effectiveness of a preeffective date financing statement may be continued only under section 504 (3) or (5) or 505 of this act.
     (5) Method of amending: Additional termination rule. Whether or not the law of this state governs perfection of a security interest, the effectiveness of a preeffective date financing statement filed in this state may be terminated after the effective date of this section by filing a termination statement in the office in which the preeffective date financing statement is filed, unless an initial financing statement that satisfies section 505(3) of this act has been filed in the office specified by the law of the jurisdiction governing perfection as provided in chapter 62A.9A RCW as of the effective date of this section as the office in which to file a financing statement.

NEW SECTION.  Sec. 507   A new section is added to chapter 62A.9A RCW to be codified as RCW 62A.9A-808 to read as follows:
     PERSON ENTITLED TO FILE INITIAL FINANCING STATEMENT OR CONTINUATION STATEMENT. A person may file an initial financing statement or a continuation statement under this part if:
     (1) The secured party of record authorizes the filing; and
     (2) The filing is necessary under this part:
     (a) To continue the effectiveness of a financing statement filed before the effective date of this section; or
     (b) To perfect or continue the perfection of a security interest.

NEW SECTION.  Sec. 508   A new section is added to chapter 62A.9A RCW to be codified as RCW 62A.9A-809 to read as follows:
     PRIORITY. This act determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before the effective date of this section, chapter 62A.9A RCW as it existed before the effective date of this section determines priority.

Sec. 601   RCW 62A.2A-103 and 2000 c 250 s 9A-808 are each amended to read as follows:
     (1) In this Article unless the context otherwise requires:
     (a) "Buyer in ordinary course of business" means a person who in good faith and without knowledge that the sale to him or her is in violation of the ownership rights or security interest or leasehold interest of a third party in the goods buys in ordinary course from a person in the business of selling goods of that kind but does not include a pawnbroker. "Buying" may be for cash, or by exchange of other property, or on secured or unsecured credit, and includes receiving goods or documents of title under a preexisting contract for sale but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt.
     (b) "Cancellation" occurs when either party puts an end to the lease contract for default by the other party.
     (c) "Commercial unit" means such a unit of goods as by commercial usage is a single whole for purposes of lease and division of which materially impairs its character or value on the market or in use. A commercial unit may be a single article, as a machine, or a set of articles, as a suite of furniture or a line of machinery, or a quantity, as a gross or carload, or any other unit treated in use or in the relevant market as a single whole.
     (d) "Conforming" goods or performance under a lease contract means goods or performance that are in accordance with the obligations under the lease contract.
     (e) "Consumer lease" means a lease that a lessor regularly engaged in the business of leasing or selling makes to a lessee who is an individual who takes under the lease primarily for a personal, family, or household purpose, if the total payments to be made under the lease contract, excluding payments for options to renew or buy, do not exceed twenty-five thousand dollars.
     (f) "Fault" means wrongful act, omission, breach, or default.
     (g) "Finance lease" means a lease with respect to which:
     (i) The lessor does not select, manufacture, or supply the goods;
     (ii) The lessor acquires the goods or the right to possession and use of the goods in connection with the lease; and
     (iii) Only in the case of a consumer lease, either:
     (A) The lessee receives a copy of the contract by which the lessor acquired the goods or the right to possession and use of the goods before signing the lease contract;
     (B) The lessee's approval of the contract by which the lessor acquired the goods or the right to possession and use of the goods is a condition to effectiveness of the lease contract; or
     (C) The lessee, before signing the lease contract, receives an accurate and complete statement designating the promises and warranties, and any disclaimers of warranties, limitations or modifications of remedies, or liquidated damages, including those of a third party, such as the manufacturer of the goods, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods.
     (h) "Goods" means all things that are movable at the time of identification to the lease contract, or are fixtures (RCW 62A.2A-309), but the term does not include money, documents, instruments, accounts, chattel paper, general intangibles, or minerals or the like, including oil and gas, before extraction. The term also includes the unborn young of animals.
     (i) "Installment lease contract" means a lease contract that authorizes or requires the delivery of goods in separate lots to be separately accepted, even though the lease contract contains a clause "each delivery is a separate lease" or its equivalent.
     (j) "Lease" means a transfer of the right to possession and use of goods for a term in return for consideration, but a sale, including a sale on approval or a sale or return, or retention or creation of a security interest is not a lease. Unless the context clearly indicates otherwise, the term includes a sublease.
     (k) "Lease agreement" means the bargain, with respect to the lease, of the lessor and the lessee in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance as provided in this Article. Unless the context clearly indicates otherwise, the term includes a sublease agreement.
     (l) "Lease contract" means the total legal obligation that results from the lease agreement as affected by this Article and any other applicable rules of law. Unless the context clearly indicates otherwise, the term includes a sublease contract.
     (m) "Leasehold interest" means the interest of the lessor or the lessee under a lease contract.
     (n) "Lessee" means a person who acquires the right to possession and use of goods under a lease. Unless the context clearly indicates otherwise, the term includes a sublessee.
     (o) "Lessee in ordinary course of business" means a person who in good faith and without knowledge that the lease to him or her is in violation of the ownership rights or security interest or leasehold interest of a third party in the goods, leases in ordinary course from a person in the business of selling or leasing goods of that kind, but does not include a pawnbroker. "Leasing" may be for cash, or by exchange of other property, or on secured or unsecured credit and includes receiving goods or documents of title under a preexisting lease contract but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt.
     (p) "Lessor" means a person who transfers the right to possession and use of goods under a lease. Unless the context clearly indicates otherwise, the term includes a sublessor.
     (q) "Lessor's residual interest" means the lessor's interest in the goods after expiration, termination, or cancellation of the lease contract.
     (r) "Lien" means a charge against or interest in goods to secure payment of a debt or performance of an obligation, but the term does not include a security interest.
     (s) "Lot" means a parcel or a single article that is the subject matter of a separate lease or delivery, whether or not it is sufficient to perform the lease contract.
     (t) "Merchant lessee" means a lessee that is a merchant with respect to goods of the kind subject to the lease.
     (u) "Present value" means the amount as of a date certain of one or more sums payable in the future, discounted to the date certain. The discount is determined by the interest rate specified by the parties if the rate was not manifestly unreasonable at the time the transaction was entered into; otherwise, the discount is determined by a commercially reasonable rate that takes into account the facts and circumstances of each case at the time the transaction was entered into.
     (v) "Purchase" includes taking by sale, lease, mortgage, security interest, pledge, gift, or any other voluntary transaction creating an interest in goods.
     (w) "Sublease" means a lease of goods the right to possession and use of which was acquired by the lessor as a lessee under an existing lease.
     (x) "Supplier" means a person from whom a lessor buys or leases goods to be leased under a finance lease.
     (y) "Supply contract" means a contract under which a lessor buys or leases goods to be leased.
     (z) "Termination" occurs when either party pursuant to a power created by agreement or law puts an end to the lease contract otherwise than for default.
     (2) Other definitions applying to this Article or to specified Parts thereof, and the sections in which they appear are:

Sec. 602   RCW 43.340.050 and 2002 c 365 s 8 are each amended to read as follows:
     (1) The authority may issue its bonds in principal amounts which, in the opinion of the authority, are necessary to provide sufficient funds for achievement of its purposes, the payment of debt service on its bonds, the establishment of reserves to secure the bonds, the costs of issuance of its bonds and credit enhancements, if any, and all other expenditures of the authority incident to and necessary to carry out its purposes or powers. The authority may also issue refunding bonds, including advance refunding bonds, for the purpose of refunding previously issued bonds, and may issue other types of bonds, debt obligations, and financing arrangements necessary to fulfill its purposes or the purposes of this chapter. The bonds are investment securities and negotiable instruments within the meaning of and for the purposes of the uniform commercial code.
     (2) The authority's bonds shall bear such date or dates, mature at such time or times, be in such denominations, be in such form, be registered or registrable in such manner, be made transferable, exchangeable, and interchangeable, be payable in such medium of payment, at such place or places, be subject to such terms of redemption, bear such fixed or variable rate or rates of interest, be taxable or tax exempt, be payable at such time or times, and be sold in such manner and at such price or prices, as the authority determines. The bonds shall be executed by one or more officers of the authority, and by the trustee or paying agent if the authority determines to use a trustee or paying agent for the bonds. Execution of the bonds may be by manual or facsimile signature, provided that at least one signature on the bond is manual.
     (3) The bonds of the authority shall be subject to such terms, conditions, covenants, and protective provisions as are found necessary or desirable by the authority, including, but not limited to, pledges of the authority's assets, setting aside of reserves, and other provisions the authority finds are necessary or desirable for the security of bondholders.
     (4) Any revenue pledged by the authority to be received under the sales agreement or in special funds created by the authority shall be valid and binding at the time the pledge is made. Receipts so pledged and then or thereafter received by the authority and any securities in which such receipts may be invested shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind against the authority, whether such parties have notice of the lien. Notwithstanding any other provision to the contrary, the resolution or indenture of the authority or any other instrument by which a pledge is created need not be recorded or filed pursuant to chapter 62A.9A RCW to perfect such pledge. The authority shall constitute a governmental unit within the meaning of RCW 62A.9A-102(((a)(45))) (1)(55).
     (5) When issuing bonds, the authority may provide for the future issuance of additional bonds or parity debt on a parity with outstanding bonds, and the terms and conditions of their issuance. The authority may issue refunding bonds in accordance with chapter 39.53 RCW or issue bonds with a subordinate lien against the fund or funds securing outstanding bonds.
     (6) The board and any person executing the bonds are not liable personally on the indebtedness or subject to any personal liability or accountability by reason of the issuance thereof.
     (7) The authority may, out of any fund available therefor, purchase its bonds in the open market.

Sec. 603   RCW 60.56.015 and 2001 c 32 s 7 are each amended to read as follows:
     An agister who holds a lien under RCW 60.56.010 shall perfect the lien by (1) posting notice of the lien in a conspicuous location on the premises where the lien holder is keeping the animal or animals, (2) providing a copy of the posted notice to the owner of the animal or animals, and (3) providing a copy of the posted notice to any lien creditor as defined in RCW 62A.9A-102(((52))) (1)(zz) if the amount of the agister lien is in excess of one thousand five hundred dollars. A lien creditor may be determined through a search under RCW 62A.9A-523 and 62A.9A-526. The lien holder is entitled to collect from the buyer, the seller, or the person selling on a commission basis if there is a failure to make payment to the perfected lien holder.

NEW SECTION.  Sec. 701   The office of the code reviser must develop legislation for the 2012 legislative session to correct any internal references required to be updated as a result of amendments in this act.

NEW SECTION.  Sec. 702   This act takes effect July 1, 2013.