## Facts

- BankAmerica financed tenants’ purchase of a manufactured home and took a security interest.
- BankAmerica perfected its security interest by notation on the home’s Oregon certificate of title.
- The tenants leased land from PDN and placed the home on PDN’s property.
- The tenants physically attached the home to the premises by removing the tongue and wheels, placing it on a foundation, and joining it to an existing structure after removing a wall.
- The tenants defaulted on the loan and the lease.
- BankAmerica foreclosed its security interest and brought a replevin action to obtain possession and remove the home.
- PDN argued the home became a fixture and that, without a UCC fixture filing, BankAmerica’s interest was subordinate; PDN also asserted removal would damage the remaining structure.
- The parties submitted the case on stipulated facts for a ruling on fixture status and removability.

## Issues

1. Whether a titled manufactured home physically annexed to leased real property becomes a fixture such that a secured creditor loses priority absent a UCC fixture filing.
2. Whether the secured creditor may replevy and remove the home even if removal causes damage to an attached structure.

## Decision

- The Court of Appeals reversed the judgment for PDN and remanded for entry of judgment for BankAmerica.
- The court held the manufactured home did not lose its character as personal property because the security interest was perfected by notation on the certificate of title.
- Because the home remained personal property, it was subject to replevin, and PDN’s fixture theory did not defeat BankAmerica’s right to possession and removal.

## Legal Principles

- Under Oregon law governing titled manufactured structures, a manufactured home titled in Oregon remains personal property even when physically attached to real property.
- A security interest perfected through the certificate-of-title system maintains priority against competing claims framed as fixture or real property interests, without a separate Article 9 fixture filing.
- A landlord’s claim based on alleged fixtures or abandonment does not override a properly perfected title-noted security interest in a titled manufactured home.
- Once the property is classified as personalty under the titling regime, replevin is an available remedy to recover possession.

## Conclusion

The court held that Oregon’s certificate-of-title system controlled classification and priority for the manufactured home, preserving its status as personal property and requiring judgment for the secured creditor in replevin notwithstanding physical annexation to the leased premises.


BankAmerica Hous. Servs. v. P.D.N. & Assocs., Inc., 977 P.2d 396 (Or. Ct. App. 1999)