I am looking for a recent source or atty gen interpretation for KY banks on the validity of lien retention. I wish to find an opinion on the retention of a first lien postion.
Situation, a creditor is in first position, the mortgage document contains the future advance clause, the creditor makes the initial advance, and then the creditor makes a subsequent advance while the first advance remains unpaid. the subsequent advance is well documented with lein date, recording book number and page number for the first advance.
Must the creditor keep the initial advance active, or unpaid, or with a $100 balance to remain in the first lien position?