A mortgagee (with a properly recorded mortgage) who is obligated to advance future funds will not have its interest attach until funds are actually given to the mortgagor.

Question

Quizplus · Accepted Answer

A mortgagee with a properly recorded mortgage has their interest attach at the time of the mortgage's recording, even if they are obligated to advance future funds. The future advances are secured by the mortgage from the time it is recorded, not when the funds are actually given.

A Mortgagee (With a Properly Recorded Mortgage) Who Is Obligated