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FIKES v. FIRST FEDERAL SAV. & L. ASS'N OF ANCHORAGE

Nos. 2011, 2020.

533 P.2d 251 (1975)

Neil C. FIKES and Lillian A. Fikes, husband and wife, Appellants, v. FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION OF ANCHORAGE, Appellee. FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION OF ANCHORAGE, Cross-Appellant, v. Neil C. FIKES and Lillian A. Fikes, husband and wife, Cross-Appellees.

Supreme Court of Alaska.

March 24, 1975.

Attorney(s) appearing for the Case

John S. Hedland, Rice, Hoppner, Blair & Hedland, Anchorage, for appellants-cross-appellees.

Karl L. Walter, Jr., Groh, Benkert, & Walter, Anchorage, for appellee-cross-appellant.

Before RABINOWITZ, C.J., and CONNOR and BOOCHEVER, JJ.

OPINION

RABINOWITZ, Chief Justice.

These consolidated appeals involve a controversy regarding the extent of a lending institution's duty to assure proper disbursement of an interim construction loan secured by a deed of trust on property in which a buyer has a prior equitable interest.

Sometime in early 1970, Neil C. Fikes and his wife Lillian began searching for land upon which to build a house. They located a desirable site, Lot 11, Block 32 of...

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