In Re Emerald Outdoor Advertising, Llc, Debtor, Tiffany Harrison, Creditor Gold Eagle Gaming Llc, Creditor v. Emerald Outdoor Advertising, LLC

Peskind’s law holds: When there is uncertainty about where to file a security interest in order to perfect it, file everywhere. This case illustrates the wisdom of that rule. In 1994, a deed of trust securing Indian trust land was recorded in the Office of the Auditor of Pierce County, Washington, the county in which the land is located. In 1995, a commercial lease of the land was recorded in the BIA Title Plant in Portland, Oregon. Which interest has priority — the deed of trust or the lease? We hold that federal law directs us to state law to determine priority, and under Washington’s race-notice statute, priority is obtained by recording in the county in which the land is located. Therefore, the deed of trust has priority over the lease.

I.Background

A. Factual Background

Roleen Hargrove, a member of the Puyallup Tribe of Indians, occupied a parcel of tribal land that was held in trust by the United States government. Under federal law, holders of Indian trust lands may mortgage their land, but they must first obtain BIA approval. See 25 U.S.C. § 483a(a). In 1994, Business Finance Corporation (“BFC”) agreed to loan Hargrove money if she executed a deed of trust in its…