Barnett Mortgage Trust v. Woods Mill, Ltd.

Banke, Judge.

Barnett Mortgage Trust, appellant, entered into a standby commitment contract with appellee, Woods Mill, Ltd. This contract required Barnett, a real estate investment trust, to be ready to provide funds to pay a construction loan on an apartment complex being developed by Woods Mill. The period of the commitment was for 35 months, at a cost to Woods Mill of $173,250, payable at stated intervals. The contract contained various provisions which authorized cancellation or termination of the commitment by Barnett. On January 12, 1975, during the period of the commitment, Woods Mill…