Counsel for Plaintiff: James R. Schraf Counsel for Defendant: Thomas C. Valkenet

Trustee sought preferential avoidance of deed of trust perfected within 90 days prior to bankruptcy petition date. The Bankruptcy Court, Duncan W. Keir, Chief J., held that the creditor was entitled to be equitably subrogated to the lien position held prior to the refinance transaction despite recording its new lien beyond ten days after the promissory note was signed on a date within the preference period and filing a certificate of satisfaction prior to recordation of its new lien.