Gordon v. NovaStar Mortg. Inc. (In re Hedrick)

Pre 2005-Act: 
Pre 2005-Act
Ruling: 
Creditor's loan security deed was not an avoidable preference since the security deed was effective not on its recording but on the date of execution, which was prior to 90-day lookback period, and under equitable subordination doctrine.
Procedural posture: 
Plaintiff chapter 7 trustee in bankruptcy sought to avoid as a preference, a security deed recorded for the benefit of defendant lender against debtors'residence that secured a refinancing loan, pursuant to 11 U.S.C. § 547. The trustee asserted that the recording was a transfer of an interest in debtors'property within the 90-day period preceding the bankruptcy, made while debtors were insolvent. Both parties moved for summary judgment.
Issue: 
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