California Concrete Co. v. Beverly Hills Savings & Loan Ass'n

Plaintiff California Concrete Co., Inc. (California Concrete), has appealed from a judgment in favor of defendant Beverly Hills Savings & Loan Association, a federal savings and loan association (Beverly Hills Savings), following the granting of Beverly Hills Savings’ motion for summary judgment.

Facts

In 1981, Beverly Hills Savings and Loan, a California corporation (Beverly Hills S & L) (not to be confused with Beverly Hills Savings, a federal savings and loan association), entered into a $13,650,000 construction loan agreement with Village Racquet Club Associates, a California limited partnership (Village Associates). Village Associates intended to construct a 140-unit condominium project on land which it had leased in Riverside County.

The construction loan was evidenced by a promissory note, secured by a leasehold deed of trust and by an assignment of rents and a security agreement, which constituted a first lien on Village Associates’ leasehold estate and on the project. The deed of trust provided, in pertinent part, that:

“Upon request of Borrower, Lender, at Lender’s option so long as this instrument secures indebtedness held by Lender, may make future…