Liberty Savings Bank v. Liberty Construction & Development Corp. (In re Liberty Construction & Development Corp.)

MEMORANDUM OPINION

MARTIN V.B. BOSTETTER, Jr., Chief Judge.

We are called upon, in this case, to determine whether a deed of trust held by Liberty Savings Bank (“the Bank” or “the Plaintiff”) grants lien status to disbursements that the Bank made to Liberty Construction & Development Corporation (“Liberty *459Construction” or “the Debtor”) in excess of the original amount secured by the deed of trust.

On July 16, 1985 Liberty Construction executed to Liberty Savings Bank a $594,-000 promissory note secured by a deed of trust on property known as the Liberty Run subdivision (“Liberty Run”). The…