Ohio follows the generally accepted rule that where there is a mortgage securing future advances such advances create liens only as they are actually made, unless the mortgagee is obligated to make the advances. In the latter case the mortgagee's lien will date from the time of its recording. In addition to this nonstatutory method by which a mortgagee can obtain lien priority, there is a statutory method by which he can do so, namely the procedure provided by § 1311.14 of Ohio Rev. Code. This statute is not new, having been enacted in 1915. However, in 1919 the Ohio Supreme Court held, in the case of Rider v. Crobaugh that the act was intended to apply "only to mortgages which were given and filed for the purpose of improving real estate after the actual commencement of operations." In deciding Rider, the court was answering a contention that the passage of what is now § 1311.14 impliedly repealed what is now § 5301.23, which gives mortgagees a lien from the date of filing, with the asserted result that all mortgage liens would be subordinated to mechanics' liens unless the statutory procedure were followed.
Hoffman, Allan S.
"Priority of Liens Between Construction Mortgagee and Mechanic's Lienors; Wayne Building & Loan of Wooster v. Yarborough,"
Akron Law Review: Vol. 1
, Article 4.
Available at: http://ideaexchange.uakron.edu/akronlawreview/vol1/iss2/4