Beacon Co. v. Cherokee Federal Savings & Loan Ass'n

McMurray, Presiding Judge.

This case involves the construction of a dwelling house in which a construction loan was obtained prior to *655the start of construction, the same being evidenced by a deed to secure debt and note. Thereafter the owner allegedly incurred indebtedness from two mechanics and materialmen for building materials and labor in which liens were filed but only after the construction loan funds had been paid out to others. An affidavit had been received by the lender from a general contractor when the loan was completely disbursed.

Upon learning that the construction loan had been…