California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 6 — Works of Improvement, Title 2 — Private Works of Improvement, Chapter 4 — Mechanics Lien, Article 5 — Priorities, Section 8456
(a) This section applies to a construction loan secured by a mortgage or deed of trust that has priority over a lien under this chapter.
(b) An optional advance of funds by the construction lender that is used for construction costs has the same priority as a mandatory advance of funds by the construction lender, provided that the total of all advances does not exceed the amount of the original construction loan.
Notes
Establishes that, for a construction loan secured by a mortgage or deed of trust having priority over chapter liens, an optional lender advance used for construction costs has the same priority as a mandatory advance. Limits that treatment to total advances not exceeding the original construction-loan amount.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 8456 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-6/title-2/chapter-4/article-5/section-8456