A construction lender had an obligation to loan $250,000 to a builder/mortgagor. The mortgage was recorded upon execution of the note. The funds were to be dispersed to the mortgagor as follows: 20 percent when the foundation was set, 20 percent when the building was roofed in, 20 percent when the interior plaster was set, 20 percent when the certificate of occupancy was issued, and 20 percent 30 days later. Will the lender have priority at the time of recording or at the time and amount of each advance?

Question

​A construction lender had an obligation to loan $250,000 to a builder/mortgagor. The mortgage was recorded upon execution of the note. The funds were to be dispersed to the mortgagor as follows: 20 percent when the foundation was set, 20 percent when the building was roofed in, 20 percent when the interior plaster was set, 20 percent when the certificate of occupancy was issued, and 20 percent 30 days later. Will the lender have priority at the time of recording or at the time and amount of each advance?

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The Answer of ​A construction lender had an obligation to loan $250,000 to a builder/mortgagor. The mortgage was recorded upon execution of the note. The funds were to be dispersed to the mortgagor as follows: 20 percent when the foundation was set, 20 percent when the building was roofed in, 20 percent when the interior plaster was set, 20 percent when the certificate of occupancy was issued, and 20 percent 30 days later. Will the lender have priority at the time of recording or at the time and amount of each advance?

​A Construction Lender Had an Obligation to Loan $250,000 to a Builder/mortgagor

A Construction Lender Had an Obligation to Loan $250,000 to a Builder/mortgagor