Escrow & Title
A Nebraska lender who advances money on a construction loan that is disbursed in draws as work is completed needs to be aware that:
AAll draws are automatically senior to all liens
BEach draw may lose priority to mechanic's liens filed before that draw is recorded✓ Correct
CConstruction loans are exempt from all lien priorities
DOnly the final draw is subject to mechanic's lien priority issues
Explanation
Construction loan priority can be complex in Nebraska. Mechanic's liens may date priority from when work visibly commenced, potentially having priority over later loan advances even if the mortgage was recorded before work began.
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