When a Section 22 Affidavit, discussed in earlier installments of this series, materially misstates a building loan’s “net sum available” to pay contractors for cost of improvement work, that can have substantial adverse...more
In addition to the mutual exchange of promises – the borrower’s promise to build in exchange for the lender’s promise to advance loan proceeds discussed in part 3 of this series – there’s another crucial aspect to a building...more
States struggle to strike the right balance between assuring payments to a contractor who improves real property and a lender whose financing helps make those improvements possible in the first place....more
In an ideal world, the interests of contractor and lender involved in the same construction project are aligned: the project succeeds, and everyone is paid what they’re owed.
But when the interests of contractor and lender...more