Toney Schloss Properties Corp. v. Union Federal Savings & Loan Ass'n

From the chancellor’s finding that appellant’s mortgage was subordinate to a construction .mortgage of the appellee (both secured by the same property), this appeal was taken.

The question involved is whether the appellant’s mortgage, which it subordinated to a construction mortgage given to the appellee, is inferior to such construction mortgage, where, at the time of settlement, the appellee paid the full amount of the loan to the mortgagor, which, in accordance with its agreement to do so, deposited the same in the name of twQ trustees to secure its application .periodically to the making…