The bankruptcy court determined that Grantham and Saba’s predecessor in interest, Broadway-Acacia, LLC, and the debtor Flamingo 55, Inc., were partners or coventurers in a venture to develop certain property, and that the loan in question was to them for the purpose of pursuing that venture. As a result, the bankruptcy court determined that Grantham and Saba do not come within the provisions of Section 509(a) of the Bankruptcy Code, which provides for subrogation, and do come within the provisions of Section 509(b)(2) of the Bankruptcy Code, which precludes subrogation. We clarify that it is Broadway-Acacia’s position as a partner or coventurer in the development enterprise that distinguished it as a joint borrower rather than a mere surety, guarantor or accommodation comaker. That drove and supported the bankruptcy court’s subrogation determinations. Neither our nor its decision should be read as reaching further than the situation presented by the relationship between the borrowers in this case.
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