Terlecky v. American Community Bank (In Re Godwin)

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• equitable lien of first mortgage holder which had been released through bank’s internal clerical error was avoided by trustee and automatically preserved for the benefit of the estate
• “11 U.S.C. § 544(a)(3) allows a chapter 7 trustee to avoid any interest in the property of the debtor that would be defeated by a bona fide purchaser for value of real property under Ohio law.”
• Ohio Revised Code § 5301.23 “is analogous to North Carolina law which has been called a ‘pure race’ statute, meaning that the one who wins the race to the Register of Deeds’ Office will have priority.”
• “The priority of liens is to be determined by reference to non-bankruptcy law.”
• “The Court concludes that pursuant to 11 U.S.C. § 544(a)(3), the Trustee is able to avoid the ... lien .... That lien is automatically preserved for the benefit of the bankruptcy estate pursuant to 11 U.S.C. § 551.”

Source: CourtListener parenthetical corpus (CC0).