Sullivan v. Stucky

• Decision Date: 08 April 1898
• Docket Number: 9,485.
• Citation: 86 F. 491
• Parties: SULLIVAN v. STUCKY et al.
• Court: United States Circuit Court, District of Indiana

86 F. 491

SULLIVAN v. STUCKY et al.

No. 9,485.

United States Circuit Court, D. Indiana.

April 8, 1898

Lorin C. Collins, Jr., Wm. Meade Fletcher, and Floyd A. Woods, for complainant.

George E. Ross, for defendants.

BAKER District Judge.

This is a suit for the foreclosure of a mortgage executed August 30 1890, by Jesse M. Stucky and Virginia A., his wife, to the American Building, Loan & Investment Society, a corporation created and existing under and by virtue of the laws of the state of Illinois. The corporation became insolvent and the plaintiff on February 8, 1894, was appointed by the circuit court of the United States for the Northern district of Illinois the receiver thereof; and by the decree of that court he was duly authorized and empowered to sue upon any and all claims and demands due or to become due to the society, to institute and prosecute foreclosure proceedings upon all mortgages and trust deeds held by it, and to wind up its affairs, and make distribution of its asset among those entitled to participate therein. On May 25, 1894, the plaintiff, on ancillary proceedings, was duly appointed receiver of the society by this court, with like powers. The charter and by-laws of the society provided that every person desiring to become a shareholder therein should pay a membership fee of $1 per share for each and every share taken by him. The shares were $100 each. It was provided that the society might loan to its shareholders all money paid into and belonging to, its loan fund, and that the loan should be made upon satisfactory notes secured by mortgage on real estate. For every $100 of loan made to a shareholder he should, in addition to such note and mortgage, transfer to the society, as collateral security, one share of stock; and such shareholder should pay interest at the rate of 10 per cent. per annum upon all loans, and all interest and dues on stock should be paid on the last Saturday of each month during the continuance of the loan. Any shareholder who should make a loan by giving taxable property as security was required to pay all taxes and assessments thereon as they became due. It was further provided that all shareholders should pay a monthly installment of 75 cents on each share of stock held by him, until the same should be fully paid out which installments were to be paid on the last Saturday of each month, without notice. On April 5, 1890, Stucky and wife purchased 15 shares of stock, and received a certificate for the same in the society. Subsequently thereto, Stucky and wife, having complied with the provisions of the charter and by-laws, made application for a loan of $1,500, and bid and agreed to pay therefor a premium of 10 per cent., and also agreed to pay interest on that sum at the rate of 5 per cent., and a premium of 5 per cent. per annum; said interest and premium being equal to interest at 10 per cent. per annum, as provided for in the by-laws of the society. On August 1, 1890, Stucky and wife, being indebted to the society in the sum of $1,852.20 for the principal, premium and interest of the loan so made, executed 74 promissory notes for the sum of $23.75 each, and four promissory notes for the sum of $12.50 each, dated August 1, 1890. To secure the payment of these promissory notes, they executed the mortgage in suit; and at the same time they transferred to the society, as further security for the loan, the 15 shares of stock held by them. Since the...