Security Building & Loan Ass'n v. Ambrose

Citations

• 187 Pa. 178
• 41 A. 28
• 1898 Pa. LEXIS 1101

Syllabus

<p>Building and loan associations — Mortgage—Priority of lien.</p> <p>An attorney at law was solicitor for two building and loan associations. He made application to the first association for a loan, and prepared and placed on record a mortgage to the association to secure the same, but the association was not authorized at the time to make the loan for the amount desired by the attorney. The matter was dropped by both parties, but the mortgage of record was not satisfied or canceled. Subsequently the attorney borrowed money from the second association and, as security therefor, placed on record a mortgage in the body of which it was written that it was “ given in place of one given erroneously to the first association.” After this mortgage was recorded the attorney resumed negotiations with the first association, and received a loan from it, for which the mortgage given erroneously was adopted as security. Held, that the mortgage given to the second association had priority of lien over the mortgage given to the first association.</p>