Rainier National Bank v. Bachmann

(dissenting) — The majority holds that Rainier National Bank's security interest in the "proceeds" of a dairy herd metamorphosed into a security interest in payments received by a dairy farmer from the federal Dairy Termination Program (DTP). The majority's holding is inconsistent with the plain language of RCW 62A.9-306(1), the purpose of the DTP, and results in an unjustified windfall for the Bank. I dissent.

Dairy Termination Program Payments

An understanding of the nature of the DTP is necessary to determine whether the DTP payments fall within the definition of proceeds. The purpose of the…