DENNIS J. STEWART, Bankruptcy Judge.
The plaintiff initiated this action as one for reclamation of certain consumer goods in which it has a purchase money security interest. The parties have submitted this action to the court for decision on October 10, 1980, on a stipulation of the material facts as follows:
The narrow question which is presented to this court for resolution is whether the security interest is to be classified as consumer goods (in which case the purchase money security interest is perfected without the filing of any financing statement under Ark.Stat.Ann. § 85-9-302(1)(d) [Supp. 1979]) or whether it is to be regarded as equipment (in which case filing of a financing statement is required for perfection). From the foregoing facts which have been stipulated, it appears that, in the written security agreement between the parties, the defendant affirmatively and unambiguously represented to the plaintiff that he was purchasing the collateral "for personal, family, or household purposes." There is no stipulation, statement, or showing that the defendant ever informed the plaintiff that the goods purchased would be used for any other purpose.
Under these circumstances, considerations of fairness dictate that the security interest be regarded as a purchase money security in consumer goods and therefore perfected without the filing of any financing statement. The stipulated facts clearly demonstrate that the plaintiff had no reason to believe that the purchased merchandise was being used as anything but consumer goods. Under these conditions, the decisions which are clearly apposite hold that it is "inconsistent with [the purposes of the Uniform Commercial Code to simplify, clarify and modernize the law governing commercial transactions] to require a creditor to monitor use of the collateral in order to ascertain its proper classification. The uncertainty caused by the potentially shifting status of the goods is not desirable in the commercial world." Commercial Credit Equipment Corp. v. Carter, 83 Wn.2d 136, 516 P.2d 767, 769 (1973). Thus, the majority of decisions on the subject hold the security interest to be perfected without filing of any financing statements.
The defendant in this case nevertheless urges that it would be unfair for the court to predicate its decision on the positive and unambiguous representation of household and personal use which the debtor made in the security agreement. Thus, it is argued that:
In the regard, however, no facts are stipulated from which it might reasonably be inferred that the defendant had no opportunity to inform the plaintiff that the goods were not purchased for the purpose of personal use. In such a case, a different result might be warranted, as it certainly would if there were a stipulation or evidence that the defendant informed, or attempted to inform, the plaintiff that the merchandise purchased was to be used as equipment for his rental property. But all that is before the court in this action is the stipulation of the parties which omits any facts upon which the court could predicate any finding other than that the defendant intended to inform the plaintiff that he intended the purchased goods for personal, family, or household use.
In the face of this unambiguous expression of intention, extrinsic circumstances are not admissible in evidence.
Accordingly, this court is compelled to find that the security interest of the plaintiff was perfected without the necessity of filing a financing statement and that the claim of Sears, Roebuck and Company must therefore be allowed as a secured claim.
On the basis of the facts before it, however, this court cannot presently grant the plaintiff's complaint for reclamation. For there is no stipulation nor any statement or showing that the debtor is not keeping up his payments on the collateral in accordance with the terms of the security agreements between the parties. Ordinarily, when a debtor is living up to his agreement to pay for property in his possession, reclamation should not be granted. In re Mulkey of Missouri, Inc., 5 B.R. 15, 6 B.C.D. 310 (W.D.Mo.Bkrtcy. Mar. 17, 1980).
It is therefore, for the foregoing reasons,
ORDERED, ADJUDGED, AND DECREED that the claim of the plaintiff herein be, and it is hereby, allowed as a secured claim.