Simonetti v. Porter

PATTERSON, Acting Chief Judge.

The Simonettis appeal from a final judgment granting an equitable lien in favor of the bondholders of Terrace Community Church, Inc. (the Church) on certain assets of the Church. We reverse.

In 1991 and 1992, the Church issued and sold a total of 643 $1,000 bonds to finance the construction of a church on real property the Church owned. Of these funds, $140,000 was diverted to an Alabama corporation known as Americare in the form *786of a loan (although from the record before us, the exact nature of this transaction is unclear). In return, the Church received 140…