(a) The following advances relate back to the time of the recording of the mortgage, and are prior and superior to subsequent encumbrances and conveyances:

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Terms Used In Tennessee Code 47-28-103

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Credit limit: means the maximum amount of principal indebtedness which may be outstanding at any one time under a revolving credit agreement. See Tennessee Code 47-28-101
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage: includes a mortgage, deed of trust, or other conveyance of real property securing obligations, except instruments creating or perfecting a security interest in fixtures which do not include other real property. See Tennessee Code 47-28-101
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • Open-end credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or revolving credit.) Source: OCC
  • Open-end credit agreement: means a revolving credit agreement that is secured by a mortgage and that is not entered into for commercial purposes. See Tennessee Code 47-28-101
  • Open-end mortgage: means a mortgage securing an open-end credit agreement. See Tennessee Code 47-28-101
  • Revolving credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or open-end credit.) Source: OCC
  • Revolving credit agreement: means a written agreement between a creditor and one (1) or more borrowers, under which:
    (A) It is contemplated that future advances of money or credit may be made on the request or demand of the borrower. See Tennessee Code 47-28-101
(1) All advances, whether obligatory or optional, made under an open-end mortgage in accordance with this chapter;
(2) All obligatory advances made under any mortgage securing a revolving credit agreement that is not an open-end credit agreement and under any obligatory or optional extension, renewal or amendment of such revolving credit agreement; provided, that no optional extension, renewal or amendment shall increase the advances entitled to priority under this subdivision (a)(2) above the maximum amount entitled to priority under the original revolving credit agreement; and
(3) All obligatory advances made under any other mortgage securing future advances.
(b) All obligatory advances made pursuant to an optional increase in the credit limit of a revolving credit agreement that is not an open-end credit agreement and pursuant to any obligatory or optional extension, renewal or amendment of such increase shall relate back to the time of the recording of the mortgage securing such revolving credit agreement and are prior and superior to subsequent encumbrances and conveyances unless the mortgagee has actual notice of an intervening conveyance or encumbrance prior to increasing the credit limit. If the mortgagee has actual notice of an intervening conveyance or encumbrance prior to increasing the credit limit, all such obligatory advances shall relate back to the time of the increase. For the purpose of this subsection (b), “actual notice” means knowledge in fact from any source by any means.
(c) Optional advances made under any mortgage securing future advances, other than an open-end mortgage, are superior in priority to any intervening conveyance or encumbrance unless the mortgagee has actual notice of the intervening conveyance or encumbrance prior to exercising the mortgagee’s option to make the advance. For the purpose of this subsection (c), “actual notice” means knowledge in fact from any source by any means.
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