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

OPINION

GONZALEZ, Justice.

This is a case of first impression concerning the effect of a subordination agreement made between the first and third lienhold-ers on the priority status of a second lien-holder. The trial court gave the second lienholder priority over the first and third lienholders. The court of appeals affirmed the judgment of the trial court. 717 S.W.2d 419. We reverse and remand.

First City National Bank (the Bank) acquired a first lien security interest on personal property owned by Sisco Enterprises. First City Capital Corporation (FCCC) obtained a second lien and ITT…