This deed of trust was recorded at Book 971, Page 158 of the Alamance County registry. The 9 November 1994 deed of trust from the Cobbs to Bank was marked satisfied as of 12 December 1995 and was canceled of record. The Cobbs subsequently defaulted on the note secured by the 12 May 1995 deed of trust and Agreement to Defendant and foreclosure proceedings were instituted on this 12 May 1995 deed of trust. The single issue is whether Bank is entitled to the benefit of equitable subrogation. Although we recognize the doctrine of equitable subrogation, it simply does not apply in this case.
Subrogation is a consequence which equity attaches to certain conditions.
It is not an absolute right, but one which depends on the equities andattending facts and circumstances of each case. In this case, when the 9 November 1994 deed of trust to Bank was marked satisfied and canceled, Defendant's 12 May 1995 recorded deed of trust gained priority over any subsequently recorded deeds of trust, including the 8 December 1995 deed of trust to Bank, as a matter of law.