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Hotel Syracuse Litigation Illustrates the Requirement that Lenders Must File Building Loan Contracts

The historic Hotel Syracuse in downtown Syracuse was recently the subject of a mortgage foreclosure action which led to litigation involving the priority of the liens against the property. The New York State Court of Appeals case of Altshuler Shaham Provident Funds, Ltd. v. GML Tower LLC (21 N.Y.3d 352), decided in June 2013, illustrates the requirement that lenders must file building loan contracts when the loan proceeds are advanced over time to pay for real estate construction purposes.

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