Plotch v. Citibank, N.A., 27 N.Y.3d 477

Prior owner had two recorded mortgages from Citibank: a $54,000 first mortgage (2000) and a $38,000 second mortgage (2001).
The owner and Citibank executed and recorded a consolidation agreement treating the two loans as a single $92,000 mortgage lien on the same day the second mortgage was recorded.
About seven years later the condominium board recorded a common‑charges lien for unpaid assessments.
Plaintiff bought the unit at a foreclosure sale subject to "the first Mortgage of record" and sued to declare the $38,000 mortgage subordinate to the board’s lien under Real Property Law § 339‑z.
Citibank asserted the consolidation agreement was the first mortgage of record, so its consolidated $92,000 lien had priority over the common‑charges lien.
Supreme Court and the Appellate Division declared the consolidation agreement to be the first mortgage of record; the Court of Appeals affirmed.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether a consolidation agreement recorded before a condominium common‑charges lien qualifies as the “first mortgage of record” under RPL § 339‑z	“First mortgage of record” means the earliest recorded individual mortgage; consolidation must be treated as separate component mortgages	A recorded consolidation agreement that unites earlier mortgages into a single lien is the first mortgage of record when no intervening lien exists	The consolidation agreement qualified as the first mortgage of record; consolidated $92,000 mortgage had priority over the condominium board’s later common‑charges lien

Plotch v. U.S. Bank N.A., 129 AD3d 813 (2d Dept) (addressing consolidation and priority under Condominium Act)