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Commercial Law

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Washington Law Review

Journal

1978

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Uniform Commercial Code—Accounts Receivable Financing: Secured Parties' New Doubts Under The "Casual And Isolated" Test—Architectural Woods, Inc. V. State, 88 Wn. 2d 406, 562 P.2d 248 (1977), Norman B. Page May 1978

Uniform Commercial Code—Accounts Receivable Financing: Secured Parties' New Doubts Under The "Casual And Isolated" Test—Architectural Woods, Inc. V. State, 88 Wn. 2d 406, 562 P.2d 248 (1977), Norman B. Page

Washington Law Review

The Washington Supreme Court held, in Architectural Woods, Inc. v. State, that the assignment fell within section 9-302(1)(e) and that since plaintiffs security interest was thus automatically perfected, the bank's interest was subordinate." In deciding that Didco's assignment to plaintiff fell within the section 9-302(1)(e) exemption from filing, the court was required to construe the language of that subsection and its accompanying official comment. More particularly, the court considered the appropriate test for determining whether the assignment constituted a "significant part" of Didco's outstanding accounts and contract rights. This note will analyze the court's reasoning in adopting the "casual and …