Smith v. State Savings & Loan Assn.

Opinion

ASHBY, Acting P. J.

State Savings and Loan Association (State) appeals from a judgment which declares that certain loans and trust deeds held by or on behalf of Michael Smith (Smith) have priority over the loans and trust deeds held by State.

Although the record on appeal is lengthy, the controlling facts may be stated very briefly. F & D Properties, not a party to this appeal, owned a 32-unit condominium conversion project in Sherman Oaks which was subject to three existing blanket encumbrances totaling $7.2 million. In a tax-deferred exchange transaction Smith sold to F & D a property…