Forman v. First National Bank

Citations

• 76 Fla. 48
• 79 So. 742

Syllabus

<p>1. Where one loans money upon real estate security for the express purpose of ¡paying off prior existing liens upon such real estate, and it is expressly agreed that intervening liens thereon will be released or subordinated to such security, and the money loaned is so used and a bona fide though futile effort is made to subordinate such intervening liens to such security and thus give to it the same legal status as that occupied by the liens that are so ’ paid off, he will be treated in equity as an equitable assignee of such liens and will be subrogated to the rights of such lienors to the extent that the money advanced by him was applied to the payment of such liens.</p> <p>2. - • The agreement out of which conventional subrogation arises and upon which it rests may be either express or implied.</p> <p>3. One who, upon the application of the owner, lends money upon land understanding that his security shall be a first lien thereon and the money so loaned is used to discharge then existing first liens tipon such land is not a mere volunteer.</p>