Scannell v. JP Morgan Chase Bank, N.A. (In re Scannell)

ORDER SETTING PRIORITY OF LIENS

DANIEL P. COLLINS, Bankruptcy Judge.

The parties present an issue of first impression, namely, which has priority in Arizona: a restitution lien or a purchase money deed of trust? The Court concludes that a purchase money deed of trust against real property has priority over an earlier recorded restitution lien.

I. Facts

The essential facts are undisputed. They occurred prepetition.

On December 15, 2004, the Pima County Attorney’s Office1 filed a restitution lien in the original principal amount of $2,070,550 against the Debtor pursuant to Arizona Revised Statutes…