Federal Land Bank of Columbia, S. C., v. Gaines

• Decision Date: 01 March 1933
• Docket Number: 552.
• Citation: 167 S.E. 856,204 N.C. 278
• Parties: FEDERAL LAND BANK OF COLUMBIA, S. C., v. GAINES.
• Court: North Carolina Supreme Court

167 S.E. 856

204 N.C. 278

FEDERAL LAND BANK OF COLUMBIA, S. C., v. GAINES.

No. 552.

Supreme Court of North Carolina

March 1, 1933

Appeal from Superior Court, Polk County; Schenck, Judge.

Controversy without action between the Federal Land Bank of Columbia, S C. and Mrs. Will Gaines. From the judgment, plaintiff appeals.

Affirmed. This is a controversy without action (C. S. § 626), submitted to the court, upon a statement of facts agreed, which are as follows:

(1) The Federal Land Bank of Columbia is a federal land bank chartered, organized, and doing business under the provisions of an act of the Congress of the United States known as the Federal Farm Loan Act (see 12 USCA § 641 et seq.).

(2) The Columbus National Farm Loan Association is a national farm loan association chartered, organized, and doing business under the terms and provisions of the Federal Farm Loan Act.

(3) On August 16, 1930, Mrs. Will Gaines made application through the Columbus National Farm Loan Association to the Federal Land Bank of Columbia for a loan of $1,000 offering as security for the loan a mortgage on 27 acres of land in Polk county, N.C. The application was approved by the Columbus National Farm Loan Association on August 20 1930, and on that date Mrs. Gaines was admitted to membership in said association. The application was approved by the Federal Land Bank of Columbia on October 1 1930. A copy of the application for the loan is attached to this statement of facts, made a part hereof, marked Exhibit A.

(4) On October 2, 1930, Mrs. Gaines was advised by the Federal Land Bank of Columbia of the approval of her application for a loan, and was requested to select from a list of approved attorneys furnished her by the bank, attorneys to prepare an abstract of title for consideration of the bank. Mrs. Gaines employed Messrs. Jones and Massenburg to prepare the abstract of title, and they furnished it to the bank on October 25, 1930.

(5) On November 5, 1930, Mrs. Gaines executed and delivered to the Federal Land Bank of Columbia a note and mortgage for the loan in the amount of $1,000, copies of which are attached to this statement of facts, marked, respectively, Exhibits B and C, and made part hereof.

(6) On November 14, 1930, the Federal Land Bank of Columbia sent to Messrs. Jones and Massenburg its check on the Commercial National Bank of Charlotte, N.C. dated November 12, 1930, for $945, payable jointly to Percy Lewis, secretary-treasurer of the Columbus National Farm Loan Association, and Mrs. Will Gaines, with instructions to the attorneys and to the secretary-treasurer of the Columbus National Farm Loan Association for closing the loan to Mrs. Gaines. A copy of the check, with indorsements thereon, is attached to this statement, made part hereof, marked Exhibit D. With the check was sent a closed loan statement, to be filled in by the secretary-treasurer of the Columbus National Farm Loan Association and signed by him and Mrs. Gaines. A copy of the statement as sent with the check is attached to this statement, made part hereof, and marked Exhibit E. The check represented the proceeds of the loan after deducting $50 for Mrs. Gaines' stock in the Columbus National Farm Loan Association, $3.50 for title determination fee, and $1 for title insurance premium.

(7) The check referred to in the preceding paragraph was delivered by the attorneys to Percy Lewis, secretary-treasurer of Columbus National Farm Loan Association, on November 18, 1930, and was handled by him as indicated in a letter addressed by Mr. Lewis under date of October 19, 1931, to Mr. M. R. McCown, a copy of which is attached to this statement, marked Exhibit F, and made part hereof. At the time of this transaction the Polk County Bank & Trust Company was the only bank in Columbus, N.C. The Polk County Bank & Trust Company was open for business through Friday, November 21, 1930, but failed to open for business on Saturday, November 22, 1930.

(8) No payments on the loan have been made by Mrs. Gaines to the Federal Land Bank of Columbia, although the Federal Land Bank of Columbia has demanded from Mrs. Gaines...