American Sterling Bank v. Johnny Management LV, Inc.

OPINION

By the Court,

Hardesty, J.:

This appeal concerns the application of the doctrine of equitable subrogation where a refinancing mortgage’s due date was accelerated. We have previously adopted the rule in Restatement (Third) of Property: Mortgages, section 7.6, that a lender whose loan proceeds were used to pay the balance of a prior note is equitably subrogated to the former lender’s priority lien position so long as an intervening lienholder is not materially prejudiced. Houston v. Bank of America, 119 Nev. 485, 490, 78 P.3d 71, 74 (2003). The Restatement reasons that holders of…