§ 26 — Subordination of liens after agreement with owner

§ 26. Subordination of liens after agreement with owner. In case an\nowner of real property shall execute to one or more persons, or a\ncorporation, as trustee or trustees, a bond and mortgage or a note and\nmortgage affecting such property in whole or in part, or an assignment\nof the moneys due or to become due under a contract for a building loan\nin relation to such property, and in case such mortgage, if any, shall\nbe recorded in the office of the register of the county where such real\nproperty is situated, or if such county has no register then in the\noffice of the clerk of such county, and in case such assignment, if any,\nshall be filed in the office of the clerk of the county where such real\nproperty is situated; and in case lienors having mechanics' liens\nagainst said real property, notices of which have been filed up to and\nnot later than fifteen days after the recording of such mortgage or the\nfiling of such assignment, and which liens have not been discharged as\nin this article provided, shall, to the extent of at least fifty-five\nper centum of the aggregate amount for which such notices of liens have\nbeen so filed, approve such bond and mortgage or such note and mortgage,\nif any, and such assignment, if any, by an instrument or instruments in\nwriting, duly acknowledged and filed in the office of such county clerk,\nthen all mechanics' liens for labor performed or material furnished\nprior to the recording of such mortgage or filing of such assignment,\nwhether notices thereof have been theretofore or are thereafter filed\nand which have not been discharged as in this article provided, shall be\nsubordinate to the lien of such trust bond and mortgage or such trust\nnote and mortgage to the extent of the aggregate amount of all\ncertificates of interest therein issued by such trustee or trustees, or\ntheir successors, for moneys loaned, materials furnished, labor\nperformed and any other indebtedness incurred after said trust mortgage\nshall have been recorded, and for expenses in connection with said trust\nmortgage, and shall also be subordinate to the lien of the bond and\nmortgage or note and mortgage, given to secure the amount agreed to be\nadvanced under such contract for a building loan to the extent of the\namount which shall be advanced by the holder of such bond and mortgage\nor such note and mortgage to the trustee or trustees, or their\nsuccessors, under such assignment. The provisions of this section shall\napply to all bonds and mortgages and notes and mortgages and all\nassignments of moneys due, or to become due under building loan\ncontracts executed by such owner, in like manner, and recorded or filed,\nfrom time to time as hereinbefore provided. In case of an assignment to\ntrustees under the provisions of this section, the trustees and their\nsuccessors shall be the agents of the assignor to receive and receipt\nfor any and all sums advanced by the holder of the building loan bond\nand mortgage or the building loan note and mortgage under the building\nloan contract and such assignment. No lienor shall have any priority\nover the bond and mortgage or note and mortgage given to secure the\nmoney agreed to be advanced under a building loan contract or over the\nadvances made thereunder, by reason of any act preceding the making and\napproval of such assignment.\n