United Community Bank v. Prairie State Bank & Trust

Illinois Appellate Court
Civil Court
Liens
Citation
Case Number: 
2012 IL App (4th) 110973
Decision Date: 
Wednesday, July 11, 2012
District: 
4th Dist.
Division/County: 
Sangamon Co.
Holding: 
Affirmed in part and reversed in part; remanded.
Justice: 
APPLETON
Illinois Supreme Court's prior holding that resulting trusts are not within the recording law is inapplicable to equitable conversion, which is not created by implication or operation of law apart from any contract, but results from executory contract for sale of land. Title insurance company's failure to discovery Plaintiff bank's judgment lien does not defeat Defendant bank's right of equitable subrogation. By law, plaintiff bank has priority over Defendant bank to extent of amount of loan proceeds used to discharge construction mortgage, which was the senior encumbrance. (STEIGMANN and COOK, concurring.)