Interstate Bldg. & Loan Ass'n v. Holland
Citation | 43 S.E. 978,65 S.c. 448 |
Court | United States State Supreme Court of South Carolina |
Decision Date | 25 March 1903 |
Parties | INTERSTATE BUILDING & LOAN ASS'N. v. HOLLAND et al. |
building association—rights OP borROWING MEMBER.
1. Where a member of a building association borrows money from it, pledging his stock to secure the loan, the relation of debtor and creditor is created.
2. A borrower of a building association should not have credited on his loan such sums as were paid by way of admission fees, stock dues, and fines.
3. A borrower from a building loan company should have credit on his loan for the withdrawal value of his stock at the time of the loan, and for payments thereafter made of stock dues, interest, and premiums, to be credited as of the time of payment, with interest.
4. No deductions from payments made by a borrowing member of stock dues, interest, or premiums should he allowed under any by-law providing that a certain amount per share should be set aside monthly for expenses, as the borrower, having become a debtor of the association, has ceased to be a member thereof.
5. A borrowing member of a building association is not chargeable with any losses of the association, nor entitled to any share in its profits.
6. A borrower of a building association is liable for the sum loaned, with such interest as may lawfully be collected under the contract.
Appeal from Common Pleas Circuit Court of Edgefield County; Benet, Judge.
Action by the Interstate Building & Loan Association against J. A. and A. P. Holland. Decree for defendants, and plaintiff appeals. Reversed.
Sheppard Bros., for appellant.
N. G. Evans, for respondents.
This is an action to foreclose a real estate mortgage given by defendants Holland to the plaintiff association to secure his bond to the association for $2,000, money borrowed, which was also secured by an assignment or pledge of 40 shares of the capital stock of said association held by the borower. The defendant pleaded payment usury, and counterclaim. The trial resulted in the following decree of the circuit court, sustaining only the plea of payment: "The above-stated action for the foreclosure of the mortgage set out in the plaintiff's complaint came on for a hearing before me at the spring term of this court for Edgefield county, in March, 1900, upon the pleadings and evidence taken by the master of said county, and reported under an order for that purpose. From this evidence I find the following facts: That on the 28th day of July, 1892, J. A. Holland borrowed from the plaintiff association the sum of $2,-000. That, as security for this loan, he assigned to the said plaintiff forty shares of the capital stock of the said association, and that on the 28th day of July, 1892, he gave to the plaintiff the bond and mortgage set out in said complaint, conditioned to pay the plaintiff, on the third Wednesday in each month thereafter, the sum of $24 as a monthly installment on said shares of stock, and shall continue to make such monthly payments for and until such time as each share of the stock borrowed on shall mature, and the sum of $10 at the same time as interest on said loan. That said bond further provides that 'it is understood that, upon final settlement with the association, it shall retain no greater sum than the amount actually advanced, with interest thereon at the rate of eight per cent. per annum.' That defendant James A. Hoi-land paid all the installments, interest, and fines called for by said mortgage and the bylaws and rules of said association, on said stock, up to the 1st day of April, 1897, when he defaulted and ceased to make any further payment. The amount so paid by him on his forty shares of stock was as follows:
To this decree appellant excepts, as follows:
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D.C.N Bldg. & Loan Ass'n v. Rice
...another contract, making them liable for the amount they received, and interest on it at the South Carolina rate. In Association v. Holland, 65 S. C. 448, 43 S. E. 978, upon which defendants rely, it does not appear that the contract was made with reference to the laws of another state. In ......
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Equitable Bldg. & Loan Ass'n v. Corley
...as defendants contend, the former method of computation would be correct, and the bond and mortgage would be overpaid. Association v. Holland, 65 S. C. 448, 43 S. E. 978. The circuit judge, however, held the contract fell under the law of Georgia, and that by that law the bond was to be com......