Printable Format58-2336. Liens of mortgages securing loans upon real estate; providing for the securing of future advances; priority of lien. Every mortgage or other instrument securing a loan upon real estate and constituting a lien or the full equivalent thereof upon the real estate securing such loan, according to any lawful or well recognized practice, which is best suited to the transaction, may secure future advances and the lien of such mortgage shall attach upon its execution and have priority from time of recording as to all advances made thereunder until such mortgage is released of record: Provided, That the lien of such mortgage shall not exceed at any one time the maximum amount stated in the mortgage.
History: L. 1971, ch. 190, ยง 1; July 1.
Attorney General's Opinions:
Assessment of mortgage registration tax on future advances clause. 86-79.
CASE ANNOTATIONS
1. Optional or obligatory future advances under mortgage have priority over liens attaching after recording but before advances made. First Nat'l Bank in Wichita v. Fink, 241 K. 321, 325, 327, 736 P.2d 909 (1987).
2. Priority of advances over liens attaching after mortgage recordation but before advances stated; limitations on open-ended clauses noted. Halliburton Co. v. Board of Jackson County Comm'rs, 12 K.A.2d 704, 709, 755 P.2d 1344 (1988).
3. Subsequent notes based on future advance clause secured only to maximum amount stated in mortgage. Mark Twain Kansas City Bank v. Cates, 248 K. 700, 710, 810 P.2d 1154 (1991).