Security Transactions—Priority—Federal Tax Liens and Future Advance Mortgages

In American Surety Co. v. Sundberg the Washington Supreme Court made a startling encroachment upon the sanctity of a secured mortgage. Using the United States Supreme Court's test of "choateness," the court held that the lien of a mortgage securing future advances is subordinate to federal tax liens filed subsequent to the filing of the mortgage, but prior to advances for which the lien was claimed.