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PACIFIC CONTINENTAL BANK v. SOUNDVIEW 90

No. 65929-4-I.

273 P.3d 1009 (2012)

167 Wn. App. 373

PACIFIC CONTINENTAL BANK, an Oregon State chartered bank, Respondent, v. SOUNDVIEW 90, LLC, a Washington, State limited liability company, and John P. Rader, in his capacity as general receiver for Soundview 90, LLC, Respondents, Village Framers Corp., a Washington corporation, Appellant.

Court of Appeals of Washington, Division 1.

March 26, 2012.

Attorney(s) appearing for the Case

Terry R. Marston II , Marston Elison PLLC, Redmond, WA, for Appellant.

James S. Irby , Diana K. Carey , Karr Tuttle Campbell, Seattle, WA, Maria A.I. Seip , Attorney at Law, Eugene, OR, for Respondent.

LAU, J.

¶ 1 RCW 60.04.221's stop notice procedure protects potential lien claimants when a lender provides interim or construction financing. Under this provision, a potential claimant may give notice to the lender, who then "shall withhold from the next and subsequent draws the amount claimed to be due as stated in the notice." RCW 60.04.221(5). If the lender fails to comply, the encumbrance securing the lender is "subordinated to the lien of the potential lien...

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