On April 13, 2023, House Bill 1420 was signed into law to clarify that the “first in time, first in right rule of priority” applies to all mortgages and deeds of trust and any future advances thereunder without regard to whether such future advances are optional or obligatory. House Bill 1420 was a direct response to the Washington State Supreme Court’s 2022 Commencement Bank decision finding that such priority rule only applies to construction loans and brings the bill much needed consistency to lien priority laws to facilitate lines of credit to support businesses operating in Washington State.
HCMP attorneys Gary Fallon and Michael Kot assisted the Washington Mortgage Bankers Association and Washington Bankers Association with moving House Bill 1420 through the legislative process, with Michael Kot testifying before the House Judiciary Committee in support of the Bill and Gary Fallon attending the signing with Governor Inslee.
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