K & L Distributors, Inc. v. Kelly Electric, Inc.

RABINOWITZ, Justice.

This appeal requires us to determine whether a real estate lender has a security interest in fixtures annexed to the mortgaged property as a result of a previously recorded deed of trust. Presuming such an interest exists we must also determine whether it survives severance of the fixtures from the real property.

I. FACTS & PROCEEDINGS

K & L Distributors, Inc. 1 (K & L) sold a piece of real property in Soldotna and the warehouse located thereon to Seafoods From Alaska, Inc. In conjunction with the sale K & L took a deed of trust for the unpaid balance of the purchase price…