Greensburg Deposit Bank v. GGC-GOFF Motors

COMBS, Justice.

In 1988, GGC-Goff applied for a loan from the Greensburg Deposit Bank, the loan to be secured by certain real estate. While the application was pending, appellee Maddox was engaged by GGC-Goff to pave a parking area on the same real estate. In processing the loan application, counsel for the bank discovered that Maddox had performed the paving work and had not been paid, and that therefore he might file a materialman’s lien for his work and materials. It was also discovered that Maddox had assigned his right to payment to the Citizen’s Bank, having borrowed from it the money to…