Whelan v. Land Title & Trust Co.

Citations

• 60 Pa. Super. 9
• 1915 Pa. Super. LEXIS 140

Syllabus

<p>Contract — Building operation — Interest.</p> <p>Where the owner of a building operation enters into an agreement with a trust company by which the latter is to issue its policies guaranteeing the completion of the buildings and the title to the mortgages issued thereon, and the owner in. order to secure the money for the operation enters into an agreement for a loan with a real estate broker by which the latter is to receive the mortgages and the builder’s notes signed in blank, all of which with the money loaned and the mortgages assigned to the trust company, are to be deposited with the trust company until the completion of the buildings, and the broker agrees that the trust company shall retain the accrued interest on the mortgages as compensation for an advance by the trust company of a portion of the money which the broker was not able to raise, and also for the insurance guaranteeing the completion of the building, the trust company is entitled to retain such interest, as against the owner of the operation, during the period running from the date when the advances were made by the trust company to the broker, and the date when the notes and mortgages were finally delivered by the company to the broker.</p>