706.11 Priority of certain mortgages, trust funds.
(1) Except as provided in sub. (4), when any of the following mortgages has been duly recorded, it shall have priority over all liens upon the mortgaged premises and the buildings and improvements thereon, except tax and special assessment liens filed after the recording of such mortgage and except liens under ss. 292.31 (8) (i) and 292.81:
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(d) Any mortgage executed to a state or national bank or to a state or federally chartered credit union.
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(1m)
(a) In this subsection:
- “Commitment” means an agreement under which a mortgagee agrees to advance to the mortgagor or another person funds that will be secured by the mortgage.
- “Construction mortgage” means a mortgage that secures an obligation incurred for the construction of an improvement on land, including the acquisition cost of the land.
(b) An advance of funds, including accrued but unpaid interest on the advance, that is secured by a duly recorded mortgage specified in sub. (1) (a) to (d) or (f) to (h) and that is made after the mortgage has been recorded has the same priority as the mortgage if the advance is made before the mortgagee has actual knowledge of an intervening lien or, regardless of when the advance is made, if any of the following applies:
- The advance is made under a commitment that is entered into before the mortgagee has actual knowledge of an intervening lien, regardless of whether the advance was made after a default or other event outside of the mortgagee’s control relieved the mortgagee of the obligation to advance funds under the commitment.
- The advance is made for the reasonable protection of the mortgagee’s interest, including for the payment of real property taxes, property insurance or assessments or other maintenance charges imposed under a condominium declaration or a restrictive covenant.
- The mortgage is a construction mortgage that clearly states on the first page of the mortgage that it is a construction mortgage and the advance is made to enable completion of the contemplated improvement on the mortgaged premises.