William Penn Savings & Loan Ass'n v. Chipin Cliveden Associates, Inc.

OPINION

EMIL F. GOLDHABER, Bankruptcy Judge:

The issue in the case at bench is the construction to be given a provision in a loan contract between a debtor and a first mortgagee of the debtor’s realty which grants a partial release of the mortgage in a subdivision of realty when each constituent lot is sold. This contract must be resolved in light of a subsequent agreement among a second mortgagee, the first mortgagee and the debtor, whereby the second mortgagee lent the debtor additional funds in reliance on the partial release provision. The issue arises under the complaint1 of William Penn…