Lummus Supply Co. v. Fidelity Federal Savings & Loan Ass'n

Marshall, Judge.

Appellee (Fidelity) contracted with a construction company (Sewanee, a corporation) on March 13, 1974, to finance the construction of six houses, to be completed within six months. Sewanee executed six promissory notes payable to Fidelity totaling $117,080, which sum was deposited in a construction loan account with Fidelity. Six written agreements between Fidelity and Sewanee provided for five withdrawals of this sum in accordance with a construction and inspection schedule, and further provided that the property should not be occupied until final inspection was made and…