JACOBS, Circuit Judge:
The federal and state issues of law on this appeal turn on the priority of liens resulting from the following sequence of events: (1) the filing of a first mortgage lien securing a construction loan; (2) the recordation of a mechanic's lien on the mortgaged premises; (3) the subordination of part of the first mortgage lien in favor of a new lender whose funds were thought sufficient to complete the construction project; (4) the collapse of the...
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