Potwin State Bank v. Ward

The opinion of the court was delivered by This is an action brought by the appellee in the lower court to
foreclose a mortgage reciting a consideration of "One Dollar
($1.00) and the further covenants, agreements and loans and
advances hereinafter specified" with a specific recital that it
was "intended as a mortgage to secure the payment of any sum or
sums of money which may be loaned or advanced by the mortgagee,
its successors or assigns, to the mortgagor at date hereof or
from time to time, as the parties hereto may now or hereafter
agree, with interest" — commonly called a "Dollar Mortgage." The underlying question concerns the priority of liens where a
mortgage is given to secure future advances and mechanic's lien
claimants supply labor and materials for the erection and
construction of a dwelling house on the mortgaged premises after
the recording of the mortgage but before the making of the
advances by the mortgagee.