Are cross collateral agreements recorded

[Chris D.]

I am considering financing a local investor who is buying a partner out. My borrower also owns an apartment complex financed with a bank loan and bought within the last year with other investors. I'd be providing financing for 70% LTV on fee simple homes where the current first trust will be paid off and I will have a first deed of trust. There has been appreciation since the acquisitions so he will be able to pull some cash out to buy the partner out. My concern is if the properties I am financing are involved in a cross collateral agreement that relates the apartment sale, and there is some kind of default, would the bank be able to step in (because their agreement precedes my first trust) and prevail to recover the properties that I have the first trust on? Does anyone know if cross collateral agreements are recorded in land records against properties that are collateralized? I hope my question is clear. Any opinions would be greatly appreciated. I have a terrific commercial lending attorney but will be interested in feedback from the BP family. Thanks in advance.