Disbursement of Ohio Construction Mortgage Loans 12 University of Cincinnati Law Review 1938

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12 U. Cin. L. Rev. 1 (1938)
Disbursement of Ohio Construction Mortgage Loans

handle is hein.journals/ucinlr12 and id is 7 raw text is: University of
Cincinnati Law Review
VoLumn XII JANUARY, 1938 No. 1
DISBURSEMENT OF OHIO CONSTRUCTION
MORTGAGE LOANS
JAMES L. MAGRISH,
Of the Cincinnati Bar
The term construction mortgage may be used to
indicate that the proceeds of the loan secured by such
mortgage are to be used for the improvement of the
mortgaged real estate whether or not the security is a
technical mortgage under General Code of Ohio, Section
8321-1:
... given in whole or in part to improve real estate or
to pay off prior encumbrances thereon, or both.
In either case the mortgagee usually has two objects in
view: (1) being assured that the real estate shall be im-
proved in the manner contemplated by the mortgagee,
and (2) that the lien of the mortgage shall be prior to
other encumbrances.
The first object is sought by disbursing the loan as the
improvement proceeds, or, if possible, after it is completed.
In practice disbursement during the progress of the im-
provement is the more frequent requirement, and the