US Laws, Codes, Statutes & Cases

                                  TITLE  45
                         LIENS, MORTGAGES AND PLEDGES
                                  CHAPTER 1
                               LIENS IN GENERAL
    45-108.  LIEN FOR PERFORMANCE OF FUTURE OBLIGATIONS -- VALIDITY --
PRIORITY. A lien may be created by contract, to take immediate effect, as
security for the performance of obligations not then in existence, which lien,
if not invalid on other grounds, shall be valid as against all persons.
    The validity of such contracts and liens as security for any obligation is
not affected as against any person by the fact that the contract does not
specify, describe or limit the obligations to be secured as to purpose,
nature, time, or amount of the obligations to be secured.
    All such liens, if otherwise valid, are valid against and prior and
superior to all rights, liens and claims acquired by other persons in the
property subject thereto after the contract creating such liens was made,
except in cases where the person in whose favor the obligation secured by such
lien was created, had actual notice of the existence of such subsequent right,
lien or claim at the time such obligation was created, and are prior and
superior to such subsequent rights, liens or claims irrespective of such or
any notice in the following cases:
    1.  Where the person, in whose favor the obligation secured thereby was
created, was legally bound to make the advance or give the consideration
resulting in such obligation.
    2.  Where the consideration for such obligation was necessarily and
actually applied to the maintenance and/or preservation of the property
subject to the lien.
    Making the advance or giving the consideration to result in an obligation
not in existence at the time such a contract creating a lien to secure the
same is made, is optional with the person making the advance or giving the
consideration unless he is bound by an express contract to the contrary which
shall not be implied from the fact that the contract to secure such obligation
was made.
    Obligations otherwise within the limits and description of those specified
in any contract creating a lien to secure the performance of obligations not
then in existence, but created in favor of any person to whom the original
party to be secured by the lien created by such contract has transferred such
contract, shall also be secured thereby in like manner as similar obligations
between the original parties thereto.
    Contracts of mortgage of real property are subject to all the provisions
of this section as amended.