Also known as: lenders
Written by attorneys · grounded in primary & secondary sources — see below
A party that extends credit secured by an interest in real property. The lender holds the right to foreclose on the property upon default to recover the debt.
Leo Lynch borrows funds from Lighthouse Shipping to purchase a warehouse. Leo executes a mortgage pledging the warehouse as collateral. When Leo defaults on payments, Lighthouse Shipping initiates foreclosure to satisfy the outstanding debt from the sale proceeds.
Liam Larson buys vacant land from a seller and obtains financing from Lattice Systems to pay the purchase price. Lattice Systems records its mortgage on the same day title passes. The mortgage receives priority over any prior claims against Liam that arose before he acquired the land.
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Lars Lindstrom conveys title to his commercial building to Lakeshore Industries by deed to secure repayment of a loan. The deed is absolute on its face, yet the parties intend it only as security. Upon full repayment, Lakeshore Industries must reconvey the property to Lars.
Lucia Lopez obtains a loan from Lakewood Manufacturing to finance a retail center purchase. Lakewood Manufacturing requires title insurance naming itself as the insured lender. When an undisclosed lien surfaces after closing, the insurer indemnifies Lakewood Manufacturing for its loss.
Leah Lamb receives a loan from a bank to acquire equipment for her business. The bank takes a security interest in the equipment and requires Leah to sign a promissory note. Upon Leah's default the bank enforces its rights against the collateral to recover the unpaid balance.
Landon Long extends a loan to a political committee. The committee must disclose the lender's identity, the loan amount, and any guarantors in its required filings. The disclosure rules ensure transparency regarding the source of campaign financing.
The lender obtains a security interest in the real property that permits foreclosure upon default to satisfy the debt. The borrower retains possession and an equity of redemption until foreclosure occurs.
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A purchase money mortgage given to acquire title or construct improvements on the same transaction receives priority over prior claims against the purchaser that attached before title passed. This priority applies even without recording against preexisting liens.
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An absolute deed will be treated as a mortgage when the parties intended it only as security for a debt. Parol evidence is admissible to prove that intent, and the grantor retains the right to redeem upon repayment.
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Title insurance indemnifies the lender against loss from title defects or liens not excepted in the policy. The insurer typically conducts a title search before issuing the policy at closing.
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…Availability of post-election funds therefore assertedly gives them nothing. But in the nature of things the willingness of lenders to make loans will depend upon the pre-election probability that the candidate and his party will attract 5% or more of the voters. When a reasonable prospect of such support appears, the…