Chang v. Steven Montgomery Crouch (In Re Hokulani Square, Inc.)

MEMORANDUM OF DECISION REGARDING LIEN PRIORITY

ROBERT J. FARIS, Bankruptcy Judge.

Defendant Investors Funding Corporation (“IFC”) and plaintiffs Walter and Sylvia Chang have filed cross-motions for summary judgment concerning the priority of their liens. IFC holds a mortgage on two pieces of property owned by defendant Hokulani Square, Inc. (“Hokulani”), at 1415 Middle Street (the “Middle Street property”) and 1320 N. School Street (the “School Street property”) in Honolulu. The Changs hold a mortgage on the Middle Street property and claim an equitable hen on the School Street property.

The…