76-238.01 Mortgages; interest in real estate included; debts that may be secured; priority of liens; future advances. - Nebraska Statutes

76-238.01. Mortgages; interest in real estate included; debts that may be secured; priority of liens; future advances.(1) Any interest in real property capable of being transferred may be mortgaged to secure existing debts or obligations, to secure debts or obligations created simultaneously with the execution of the mortgage, to secure future advances necessary to protect the security, and to secure any future advances to be made at the option of the parties. At no time shall the secured principal future advances, not including sums advanced to protect the security, exceed a total amount or percentage of a total amount stated in the mortgage. If the mortgage authorizes advances by a percentage of the mortgage amount, such advances shall not exceed that authorized percentage. All such debts, obligations, and future advances shall, from the time the mortgage is filed for record as provided by law, be secured by such mortgage equally with and have the same priority over the rights of all persons who subsequent to the recording of such mortgage acquire any rights in or liens upon the mortgaged real estate as the debts and obligations secured thereby at the time of the filing of the mortgage for record, except that (a) the mortgagor or his or her successor in title is hereby authorized to file for record, and the same shall be recorded, a notice limiting the amount of optional future advances secured by such mortgage to not less than the amount advanced actually at the time of such filing, and a copy of such filing shall be filed with the mortgagee, and (b) if any optional future advance shall be made by the mortgagee to the mortgagor or his or her successor in title after written notice of any mortgage, lien, or claim against such real property, or after written notice of labor commenced or material furnished or contracted to be commenced or furnished on such real property which is junior to such mortgage, then the amount of such advance shall be junior to such mortgage, lien, or claim, including a claim for materials delivered or labor performed which is ultimately filed as a construction lien and of which such written notice was given.(2) The reduction to zero or elimination of the debt evidenced by the instruments authorized in this section shall not invalidate the operation of this section as to any future advances unless a notice or release to the contrary is filed for record as provided by law. SourceLaws 1961, c. 368, § 1, p. 1140; Laws 1974, LB 913, § 1; Laws 1987, LB 136, § 1. AnnotationsThe Legislature has fixed the priority of some optional advances at the time mortgage is recorded. Larson Cement Stone Co. v. Redlim Realty Co., 179 Neb. 134, 137 N.W.2d 241 (1965).