Bank loaned $8 million to Real Estate Company to build an apartment complex. The loan was secured by a mortgage. Real Estate hired contractors to provide concrete work, plumbing, carpentry, and other construction services. Real Estate later went bankrupt owing Bank $3 million. The contractors recorded mechanic's liens when they were not paid for their work. The property was sold to Bank at a sheriff's sale for $1.3 million. The contractors claimed that their mechanic's liens should be satisfied out of the $1.3 million before any funds were distributed to Bank for its mortgage. The trial court distributed the $1.3 million primarily to Bank, with only a small fraction going to the contractors. Do the liens come before the mortgage in priority of payment?

a.

Yes because the contractors are in greater need of the money than the bank.

b.

Yes, if the liens predated the mortgage.

c.

No if the mortgage predate the liens.

d.

Yes because the purpose of the Mechanics' Lien Act is to protect those who, in good faith, furnish material or labor for construction of buildings.

e.

Either B or C are correct.