654.12A Priority of advances under mortgages. 1. Subject to section 572.18, if a prior recorded mortgage contains the notice prescribed in this section and identifies the maximum credit available to the borrower, then loans andadvances made under the mortgage, up to the maximum amount of credit together withinterest thereon, are senior to indebtedness to other creditors under subsequently recordedmortgages and other subsequently recorded or filed liens even though the holder of theprior recorded mortgage has actual notice of indebtedness under a subsequently recordedmortgage or other subsequently recorded or filed lien. So long as credit is available to theborrower, payment of the outstanding mortgage balance to zero shall not extinguish theprior recorded mortgage if it contains the notice prescribed by this section. The noticeprescribed by this section for the prior recorded mortgage is as follows: NOTICE: This mortgage secures credit in the amount of ......................... Loans and advances up to this amount, togetherwith interest, are senior to indebtedness to other creditors undersubsequently recorded or filed mortgages and liens. 2. unt of ......................... Loans and advances up to this amount, togetherwith interest, are senior to indebtedness to other creditors undersubsequently recorded or filed mortgages and liens. 2. However, the priority of a prior recorded mortgage under this section does not apply to loans or advances made after receipt of notice of foreclosure or action to enforce asubsequently recorded mortgage or other subsequently recorded or filed lien. 84 Acts, ch 1272, §2; 90 Acts, ch 1001, §1; 2013 Acts, ch 30, §194Referred to in §535.10 Sat Dec 23 12:22:03 2023 Iowa Code 2024, Section 654.12A (21, 0)
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