Coke Lumber & Manufacturing Co. v. First National Bank in Dallas

GUITTARD, Justice.

This case presents the question of whether an interim lender is liable to a material-man for the amount of a claim for materials furnished to a builder on the ground that the lender, after receiving actual notice of the materialman's claim and lien, advanced funds to the builder in excess of the amount of the claim. We hold that the lender has no such liability. We also deny the materialman’s claim for priority of its lien as against the lender’s deed of trust securing subsequent advances, and we sustain the power of the trustee named in the deed of trust to sell the land on…