Guaranty Sav. Bldg. & Loan Ass'n v. Russell

One Slaughter applied to appellee, Annie Keith Russell, for money with which to build a house, the parties referring to the transaction as 'a “construction loan.” The loan was made and mortgage executed on the property as security, which was duly recorded. Slaughter became indebted also to the Estes Lumber Company, and upon completion of the building made application to the Guaranty Savings Building & Loan Association (hereinafter referred to as the Loan Company) for a loan on the property presumably sufficient to pay off all claims thereon. The title was found satisfactory and the loan made,…