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SCHULTZ v. BANK OF THE WEST

CC 93CV0201; CA A85556; SC S42658.

934 P.2d 421 (1997)

325 Or. 81

Howard G. SCHULTZ and Ann C. Schultz, Petitioners on Review, v. BANK OF THE WEST, C.B.C., Respondent on Review, and Robert W. Muir and June E. Muir, Respondents on Review, and John H. Gateley and David E. Gateley, dba Gateleys' Fairway Motors, Defendants.

Supreme Court of Oregon.

Decided March 27, 1997.

Attorney(s) appearing for the Case

Stephen Mountainspring of Dole, Coalwell & Clark, P.C., Roseburg, argued the cause and filed the briefs for petitioners on review.

Frank C. Rote, III of Brown, Hughes, Bird, Lane & Rote, Grants Pass, argued the cause and filed the brief for respondent on review Bank of the West, C.B.C.

Thomas J. Peterson, Eugene, argued the cause for respondents on review Robert W. Muir and June E. Muir.

Before CARSON, C.J., and GILLETTE, VAN HOOMISSEN, FADELEY, GRABER and DURHAM, JJ.

GILLETTE, Justice.

The issue in this case is whether a consumer, who purchases a used motor home from a dealer who was selling the motor home on consignment, acquires that vehicle free of a creditor's prior perfected security interest in it. For the reasons that follow, we hold that the consumer does take the motor home free of the security interest.

The facts are undisputed. In 1987, defendants (the Muirs) bought a motor home. In 1988, the Muirs created,...

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