Gerrity Co. v. Laconia Savings Bank

In this case we are asked to interpret RSA 447:12-a (Supp. 1979), which sets forth priority rules relating to construction mortgages and mechanic’s and materialmen’s liens.

In February 1978, Roger Chouinard asked the Laconia Savings Bank to finance the construction of a home on certain land in Moultonboro. The bank approved the loan with the understanding that Mr. Chouinard would make a down payment of $15,000 to purchase the land and the bank would supply $42,350 in construction funds. On the date of the loan closing, March 2, 1978, Mr. Chouinard did not produce the entire $15,000. Laconia…