ITT Diversified Credit Corp. v. First City Capital Corp.

OPINION

SEARS, Justice.

This appeal involves the effect of a subordination agreement on the priority of liens. First City National Bank (the Bank) acquired a first lien security interest in certain assets of the debtor, Sisco Enter prises, Inc., on May 12, 1978. On July 10, 1978, appellee, First City Capital Corporation (formerly Small Business Investment Company of Houston), acquired a second lien security interest in the same assets. Finally, on October 20, 1978, appellant, ITT Diversified Credit Corporation, acquired a third lien security interest in these assets. At this point in time the…