Home Savings & Loan Co. v. O'Reilly (In Re O'Reilly)

MEMORANDUM OPINION AND ORDER

RICHARD L. SPEER, Bankruptcy Judge.

This cause came before the Court upon the Motion of Hill’s Interiors, Inc., to determine the priority of liens. The issue presented to the Court upon the parties’ memoranda is what position of priority does a mortgage hold if it was cancelled by an alleged fraudulent act of a bank officer (who is also the mortgagor), and refiled by the bank subsequent to the recording of a mechanics lien upon the same property.

FACTS

The Court finds the following undisputed facts:

1.) Home Savings & Loan Company (hereinafter referred to as the Bank)…