There is a newer version
of
this Section
2017 Tennessee Code
Title 47 - Commercial Instruments and Transactions
Chapter 28 - Open-End Mortgages and Mortgages Securing Future Advances
§ 47-28-108. Priority of advances.
Universal Citation: TN Code § 47-28-108 (2017)
- (a) Any advance made by the creditor:
- (1) Before the effective date of any notice of limitation from the borrower, made in accordance with this chapter; or
- (2) In response to a request or demand initiated by the borrower prior to the service of an effective notice of limitation, made in accordance with this chapter,
shall be entitled to the same priority as other advances made under that agreement, even though that advance increases the total amount of principal indebtedness beyond the credit limit fixed in that notice of limitation.
- (b) Any advance made by a creditor after the effective date of a notice of limitation (except for advances made in response to requests or demands initiated by the borrower prior to the service of an effective notice of limitation) that exceeds the credit limit stated in the notice shall not be entitled to priority over a conveyance or encumbrance recorded on or before the date of the service of the notice of limitation.
- (c) An advance is made by the creditor when the borrower becomes obligated to repay it.
Disclaimer: These codes may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
