National Surety Co. v. Brown-Graves Co.

MOORMAN, Circuit Judge.

The Wade Chateau Company, lessee of a lot in Cleveland, for the purpose of obtaining money to construct a building upon the lot, issued $100,000 of bonds, and to secure them executed a first mortgage deed of trust upon the leasehold to the Guardian Savings & Trust Company, of Cleveland, Ohio, as trustee for the bondholders. In the deed of trust there was a building clause which provided that the Chateau Company would construct on the premises a now building of the value of $165,000, which upon completion should be free from “all liens or liability for liens under any…