Old Stone Mortgage & Realty Trust v. New Georgia Plumbing, Inc.

Ingram, Justice.

We granted certiorari in Old Stone Mtg. &c. Trust v. New Ga. Plumbing, 140 Ga. App. 686 (231 SE2d 785) (1976), to review Division 2 of the opinion of the Court of Appeals which holds that where a senior deed to secure debt is subordinated to a junior deed to secure debt, the senior security deed becomes by such subordination action inferior to an intervening materialman’s lien of which both security deed grantees had actual notice.

As the Court of Appeals notes, it is the rule in other jurisdictions that "One who subordinates a first lien to a third lien makes his lien inferior…