In re Acaya Case No: 06-51741

The consumer protection purposes of ASFA suggest that ASFA’s definition of “cash price”
should not be incorporated into the California UCC for purposes of determining a purchase money security interest. Consequently, WFFA’s purchase money security interest does not include amounts used to pay the negative equity in a trade-in vehicle. Instead, the dual status rule provides an appropriate tool in determining the extent of WFFA’s purchase money security interest. For these reasons, the objection of WFFA to confirmation of the debtor’s plan is sustained. Acaya may file an amended plan consistent with this decision.

Date of decision: 5/18/05


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