Arkansas Teacher Retirement Sys. v. Coronado Properties, Ltd.

John E. Jennings, Judge.

This appeal is from a judgment of the Sebastian County Chancery Court holding that appellee, a junior mortgagee, is entitled to the proceeds of a fire insurance policy. We affirm the chancellor’s ruling.

Appellant, Arkansas Teacher Retirement System (ATRS), held a note and first mortgage on an apartment project in Fort Smith. On May 24, 1984, appellee, Coronado Properties, owner of the property, conveyed the apartment complex to French Village Investment Company, by general warranty deed and French Village assumed the indebtedness owed ATRS and executed a “Wrap-Around…