Columbia Bldg. & Loan Ass'n. v. Junquist

• Decision Date: 24 May 1899
• Citation: 111 F. 645
• Parties: COLUMBIA BUILDING & LOAN ASS'N. v. JUNQUIST et al.
• Court: U.S. District Court — District of Wyoming

111 F. 645

COLUMBIA BUILDING & LOAN ASS'N. v. JUNQUIST et al.

United States Circuit Court, D. Wyoming.

May 24, 1899

Gibson Clark and J. Norman, for complainant.

McMicken & Blydenburg, for defendant.

RINER District Judge.

This is a suit in equity, brought to foreclose a trust deed given by the defendants to the plaintiff to secure the payment of the sum of $3,000. The plaintiff is a building and loan association. On the 4th of June, 1890, the defendant, William Junquist, became a member of the association by subscribing for 30 shares of its stock designated as 'Stock A,' and on that day a certificate for the stock was issued to him. On the 11th of December of the same year he borrowed the sum of $3,000, due six years after date, with interest and installments thereon, according to the by-laws and rules of the association; these amounts to be paid on or before the 5th day of each and every month, or to be counted as principal. While I have examined the evidence and briefs of counsel with great care, I have not had the time to prepare an opinion in writing, and shall only briefly state the grounds upon which my conclusions in this case are based. The plaintiff is a building and loan association organized under the laws of Colorado with the powers usually conferred upon associations of this character. While the statute may differ in some respects from the statutes of other states upon this subject, yet I think the powers conferred upon the corporation in this cause are substantially the same as those conferred upon and exercised by like corporations in other jurisdictions. The principle underlying its method of transacting business is mutuality, its object being to raise funds from its members to be loaned among themselves, or to such as may desire to avail themselves of the privilege. This is done by the payment, monthly, of certain amounts of interest and installments; and the stockholders, whether borrowers or nonborrowers participate alike in the earnings of the association, and alike must assist in bearing the burden of any loss which it may sustain. All of the stock is matured and all of the loans are made from what is called the loan fund; indeed, this necessarily follows from the fact that there is no other fund from which the stock can be matured. All members receive the same per cent. of profit for the reason that the dividends are declared on the entire business; and all payments made by...