## Facts

- In 1969, the Rumerys granted Wyoming Production Credit Association (WPCA) a security interest in then-owned and after-acquired farm machinery and equipment; WPCA perfected by filing a financing statement and continuation statements.
- In 1978 and 1982, the Wyoming State Farm Loan Board (Board) loaned the Rumerys funds to purchase and install an irrigation system that included gated plastic irrigation pipe; the Board took and recorded real estate mortgages but made no UCC financing or fixture filing.
- The gated pipe consisted of lightweight plastic sections (20–30 feet) laid end-to-end on fields and connected to permanent riser pipes attached to underground water lines; the Rumerys stored the gated pipe on a trailer when not in use.
- In 1985, the Rumerys executed a security agreement to WPCA listing specific equipment, including the gated pipe; WPCA’s interest was later assigned to Farm Credit System Capital Corporation (FCSCC).
- After the Rumerys defaulted, FCSCC sought foreclosure of its security interests; the Board claimed its mortgages had priority because the gated pipe had become a fixture.
- The district court granted partial summary judgment for FCSCC, ruling the gated pipe was not a fixture and that FCSCC had the superior interest; the Board appealed on the fixture question.

## Issues

1. Whether the gated plastic irrigation pipe became a fixture by installation and use in the irrigation system.
2. If the pipe was not a fixture, whether FCSCC’s perfected Article 9 security interest in equipment had priority over the Board’s recorded real estate mortgages.

## Decision

- The Wyoming Supreme Court affirmed the partial summary judgment for FCSCC.
- The court held the gated pipe did not become a fixture and remained personal property.
- Because the pipe was personal property, FCSCC’s perfected security interest had priority over the Board’s mortgage-based claim.

## Legal Principles

- Fixture status is determined by a three-factor test: (1) annexation to the realty, (2) adaptation to the realty’s use, and (3) intent that the item be a permanent accession to the land.
- Intent is the controlling consideration and may be inferred from the item’s design, method of attachment, and actual use.
- Equipment designed for portability, easily disconnected, and used in multiple locations is unlikely to be treated as a fixture absent clear evidence of permanence.
- A creditor relying on real estate mortgages to claim priority in an item as a fixture generally must show fixture status; absent fixture status, Article 9 filing priority governs interests in personal property.

## Conclusion

The court classified gated plastic irrigation pipe as movable farm equipment rather than a fixture, so the Board’s recorded mortgages did not reach the pipe, and FCSCC’s perfected security interest in equipment prevailed.


Wyo. State Farm Loan Bd. v. Farm Credit Sys. Cap. Corp., 759 P.2d 1230 (Wyo. 1988)