Ohio Code § 5301.232

§ 5301.232.

(A) Whether or not it secures any other debt or obligation, a mortgage may secure unpaid

balances of loan advances made after the mortgage is delivered to the recorder for

record, to the extent that the total unpaid loan indebtedness, exclusive of interest

thereon, does not exceed the maximum amount of loan indebtedness which the mortgage

states may be outstanding at any time.  With respect to such unpaid balances, division (B) of this section is applicable

if the mortgage states, in substance or effect, that the parties thereto intend that

the mortgage shall secure the same, the maximum amount of unpaid loan indebtedness,

exclusive of interest thereon, which may be outstanding at any time, and contains

at the beginning thereof the words “OPEN-END MORTGAGE.” (B) A mortgage complying with division (A) of this section and securing unpaid balances

of loan advances referred to in such division is a lien on the premises described

therein from the time such mortgage is delivered to the recorder for record for the

full amount of the total unpaid loan indebtedness, including the unpaid balances of

such advances that are made under such mortgage, plus interest thereon, regardless

of the time when such advances are made.  If such an advance is made after the holder of the mortgage receives written notice

of a lien or encumbrance on the mortgaged premises which is subordinate to the lien

of the mortgage, and if such holder is not obligated to make such advance at the time

such notice is received, then the lien of the mortgage for the unpaid balance of the

advance so made is subordinate to such lien or encumbrance.  If an advance is made after the holder of the mortgage receives written notice of

work or labor performed or to be performed or machinery, material, or fuel furnished

or to be furnished for the construction, alteration, repair, improvement, enhancement,

or embellishment of any part of the mortgaged premises and if such holder is not obligated

to make such advance at the time such notice is received, then the lien of the mortgage

for the unpaid balance of the advance so made is subordinate to a valid mechanic's

lien for the work or labor actually performed or machinery, material, or fuel actually

furnished as specified in such notice. (C) The mortgagor may limit the loan indebtedness secured by the mortgage to that in

existence at the time of the delivery of a written notice to that effect to the recorder

for record, if such notice is executed by the mortgagor in the manner provided in section 5301.01 of the Revised Code , states the volume and initial page of the record or the recorder's file number of

the mortgage, and a copy thereof is served upon the holder of the mortgage prior to

the delivery of such notice to the recorder for record.  Any such notice shall be recorded and indexed by the recorder as an amendment of

the mortgage.  Such right of the mortgagor to limit loan indebtedness secured by the mortgage is

not applicable to interest subsequently accruing on loan indebtedness, loan advances

the holder of the mortgage is obligated to make, or loan advances made after the delivery

of any such notice to the recorder for record in order to pay for the cost of completing

any construction, alteration, repair, improvement, enhancement, or embellishment of

any part of the mortgaged premises the financing of which, in whole or in part, the

mortgage was given to secure. (D) The written notices provided for in division (B) of this section shall be signed

by the holder of the lien or encumbrance or the person who has performed or intends

to perform work or labor or who has furnished or intends to furnish machinery, material,

or fuel, or by his agent or attorney, and shall set forth a description of the real

property to which the notice relates, the date, parties to, the volume and initial

page of the record or the recorder's file number of the mortgage over which priority

is claimed for the lien or encumbrance, and the amount and nature of the claim to

which the lien or encumbrance relates or the nature of the work or labor performed

or to be performed or machinery, material, or fuel furnished or to be furnished and

the amount claimed or to be claimed therefor.  The written notices provided for in divisions (B) and (C) of this section shall

be deemed to have been received by or served upon the holder of the mortgage when

delivered to such holder personally or by registered or certified mail at the address

of such holder appearing in the mortgage or an assignment thereof or, if no address

is so given, at the principal place of business or residence of such holder or the

statutory agent of such holder within this state or, if such holder has no principal

place of business or residence or a statutory agent within this state, when posted

in some conspicuous place on the mortgaged premises. (E) As used in this section: (1) “ Mortgage ” includes a mortgage, deed of trust, or other instrument in the nature of a mortgage. (2) “ Mortgagor ” includes the mortgagor's successors in interest as disclosed by the records of the

recorder or recorders of the county or counties in which the mortgaged premises are

situated. (3) “ Holder of the mortgage ” means the holder of the mortgage as disclosed by the records of the recorder or

recorders of the county or counties in which the mortgaged premises are situated. (4) A holder of a mortgage is “ obligated ” to make an advance if such holder or the person to whom the repayment of such advance

is owed has a contractual commitment to do so, even though the making of such advance

may be conditioned upon the occurrence or existence, or the failure to occur or exist,

of any event or fact. (5) “ Statutory agent ” means the statutory agent of a corporation as disclosed by the records of the secretary

of state and provided for in sections 1701.07 , 1702.06 , and 1703.041 of the Revised Code . (6) “ Loan indebtedness ” does not include unpaid balances of advances made for the payment of taxes, assessments,

insurance premiums, and costs incurred for the protection of the mortgaged premises. (F) This section is not exclusive, does not apply to any mortgage filed or recorded in

conformity with section 1701.66 of the Revised Code , and does not prohibit the use of other types of mortgages permitted by law.