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73 As such, counsel for PNC petitioned the Texas Supreme Court for review solely contending the opinion in Zepeda required reversal; the Texas Supreme Court agreed. e court "observed that equitable- subrogation rights become fixed at the time the proceeds from a later loan are used to discharge an earlier lien." It further stated that a "lender's negligence in preserving its rights under its own lien does not deprive the lender of its rights in equity to assert an earlier lien that was discharged using proceeds from the later loan" [Howard, 2021 WL 297579, at *3]. Applying Zepeda to the facts of the case before it, the Texas Supreme Court held that PNC's failure to timely foreclose under its deed of trust did not bar its subrogation rights, and subrogation permits a lender to assert rights under a lien its loan has satisfied when the lender's own lien is infirm. Without hearing oral argument, the Texas Supreme Court granted PNC's petition for review and reversed that portion of the court of appeals' judgment, declaring PNC's equitable-subrogation rights unenforceable based on a determination that PNC was dilatory in enforcing its own lien. It also remanded to the court of appeals for further proceedings consistent with this opinion and with Zepeda. Unmistakably a win for lenders and servicers with assets located across the Lone Star State, this by no means lets lenders "off the hook." ey must actively engage counsel and continue to monitor their liens to circumvent potential statute of limitations issue altogether to avoid having to assert their equitable subrogation rights. Robert D. Forster, II, is the Managing Partner of the BDF Law Group and is based in the Addison, Texas location. e BDF Law Group provides a full range of legal services to creditors on defaulted commercial and residential mortgage loans. Since joining the firm in 2006, his practice has primarily consisted of real estate, mortgage banking, and probate matters throughout Texas. He is a frequent speaker at continuing legal and title education programs on mortgage banking, title, probate, and creditors' rights-related topics and has authored numerous articles and publications, including serving as a co-author of the Texas State Bar's Foreclosure Manual. Unmistakably a win for lenders and servicers with assets located across the Lone Star State, this by no means lets lenders "off the hook."