In January of this year, the Bankruptcy Court in Phoenix issued its opinion in In re Scannell 505 B.R. 523 (Bkrtcy.D.Ariz.,2014) which held that a purchase money security interest in real property had priority over pre-existing liens against the purchaser. The State of Arizona had obtained a Restitution Lien based on criminal activity of Mr. Scannell, which it recorded. After that, Mr. Scannell acquired 2 properties in Phoenix with loans from Chase Bank secured with purchase money deeds of trust. The State of Arizona argued that its Restitution Lien, which was prior in time to the acquisition of the properties, attached to the properties and was superior to the purchase money security interests of Chase Bank. The Bankrupcty Court noted that the Arizona legislature passed ARS §33-705 in 1996, which expressly states that a purchase money security interest has priority over all liens which arose against the purchaser prior in time to the acquisition of the subject properties.