Colonial Mortgage Service Co. v. Southard

The sole issue raised by the instant cause is whether, pursuant to R. C. 5301.232, the subcontractors are entitled to. priority over Colonial with regard to the distribution of the proceeds from the foreclosure of the Southards’ mortgage.

R. C. 5301.232 controls the instant cause. The mortgage held by Colonial was a properly recorded open-end mortgage securing any advances made by Colonial up to the total $2,000,000 which Colonial agreed to advance (R. C. 5301.232[A]) and doing so regardless of when, after recording, those advances were made (R. C. 5301.232 [B]). As such, Colonial’s mortgage…