86 F. 748 (W.D.N.C. 1898), Brower v. Life Ins. Co. of Virginia

Citation:86 F. 748
Case Date:April 29, 1898
Court:United States Courts of Appeals, Court of Appeals for the Fourth Circuit

Page 748

86 F. 748 (W.D.N.C. 1898)




United States Circuit Court, W.D. North Carolina.

April 29, 1898

A. E. Holton, for plaintiff.

MacRae & Day, for defendant.

SIMONTON, Circuit Judge.

The plaintiff instituted his proceedings in the state court of North Carolina. They have been removed into this court. The facts of this case are these:

The Life Insurance Company of Virginia is a corporation of the state of Virginia. Besides being engaged in the business of life insurance, it is authorized by its charter to lend its surplus profits on mortgages or loans of real estate. For many years it has been engaged in making such loans. Under its fixed rules, no loans are made except to persons who hold policies in the company, either life policies or endowment policies. The plaintiff, John M. Brower, a citizen of the state of North Carolina, resident at Mt. Airy, in that state, desiring to improve certain real estate in that town, wished to borrow the sum of $5,000. He made application to Mr. Carter, an attorney at law, at Mt. Airy, who examined titles for the company, to effect a loan for him. Carter explained to him the rule of the

Page 749

company, limiting its loans to policy holders; and Brower qualified himself by subscribing to three endowment policies in the Life Insurance Company of Virginia, one for $1,000, and two for $2,000 each. He then made application for a loan of $5,000 for the term of seven years, interest 6 per cent. per annum, payable monthly, on the last Saturday of each month, at such place as lender may direct, the loan to be secured by mortgage of real estate. The original application for $5,000 was withdrawn, and three separate applications of the same kind were made,-- one for $1,000, and two for $2,000 each. The real estate of Brower which he wished to improve was in three separate parcels, and this division of the sum needed was made for convenience. The application was granted. The insurance company furnished Brower $1,000, and took his bond in the penal sum of $2,000, of which this is a copy:

'Know all men by these presents, that I, John M. Brower, of Mount Airy, in the county of Surry and state of North Carolina, am held and firmly bound unto the Life Insurance Company of Virginia in the sum of two thousand dollars, to be paid to said company, its successors or assigns, at its home office in Richmond, Virginia, to which payment well and truly be made I bind myself, my heirs, executors, and administrators, jointly and severally, firmly by these presents. Sealed with my seal, and dated at Mount Airy, N.C., this 21st day of January, one thousand eight hundred and ninety-three.

'The condition of this obligation is such that whereas, the said John M. Brower has made application to said the Life Insurance Company of Virginia for the advancement to him by said company of one thousand dollars, by way of anticipation of the value, at its maturity, of an endowment of one thousand dollars, evidenced by a certain certificate or policy No. 3,211, issued by said company to said John M. Brower; and whereas, said company has advanced to said John M. Brower the sum of one thousand dollars by way of said anticipation: Now, therefore, if the above-bounden John M. Brower, his heirs, executors, and administrators, or any of them, shall pay or cause to be paid unto said company, its successors or assigns, the just sum of one thousand dollars, seven years from the 28th day of January, A.D. 1893 (or at and upon the maturity of the endowment set forth and provided for in said certificate or policy, if that shall sooner happen), together with interest thereof during said period and until paid, at the rate of six per cent. per annum from the date last mentioned, payable monthly on the last Saturday of each and every month, and shall also pay or cause to be paid unto said company, its successors or assigns, the sum of twelve ($12.00) dollars, on the 28th day of January, A.D. 1893, and on the last Saturday of each and every month thereafter, as and for the monthly payments or installments on said endowment, the certificate or policy of which endowment the said John M. Brower hereby...

To continue reading