Freedom Federal Savings & Loan Ass'n v. Yakle Lumber Yard

McNULTY, Acting Chief Judge.

In this interlocutory appeal we reverse a summary judgment against Freedom Federal Savings and Loan Association, mortgagee/lender, and in favor of certain mechanics’ lienors against whom Freedom Federal has cross-claimed herein.

*114In April of 1974, Freedom Federal entered into a construction loan agreement with the property owner, Belhaven Development Company. A note and mortgage were executed and recorded on the date of that agreement, together with a notice of commencement of work.

Construction was commenced and loan funds were disbursed under separate requisitions…