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

Pre 2005-Act: 
Pre 2005-Act
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.
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