Bank's Failure to Require Sworn Statement of Lien Claimants
In Detroit Steel Products Co. v. Hudes, 17 Ill. App. 2d 514, 521, 151 N.E.2d 136, 139(1958), the mortgagee was subrogated to the extent of the payment from its loan proceeds as to two lien claimants. Detroit Steel, 17 Ill. App. 2d at 521, 151 N.E.2d at 139.
In making its determination, the reviewing court noted that the bank failed to require the statutory "sworn statement of lien claimants." Detroit Steel, 17 Ill. App. 2d at 520, 151 N.E.2d at 139.
The Court interpreted the court's statement as support for our conclusion that in order to be subrogated to other lien claimants, the liens must be perfected liens.
Our conclusion is furthered by the facts of the case which indicate that the two claimants had unpaid Hens at the time the mortgagee required they be paid from the loan proceeds and by the court's description of "known mechanics lien claimants." Detroit Steel, 17 Ill. App. 2d at 516, 520, 151 N.E.2d at 137, 139.