Interstate Building & Loan Ass'n v. Powell

• Decision Date: 03 June 1899
• Parties: INTERSTATE BUILDING & LOAN ASS'N OF ATLANTA, GA., v. POWELL.
• Court: South Carolina Supreme Court

33 S.E. 355

55 S.C. 316

INTERSTATE BUILDING & LOAN ASS'N OF ATLANTA, GA., v. POWELL.

Supreme Court of South Carolina

June 3, 1899

Appeal from common pleas circuit court of Richland county; Ernest Gary, Judge.

Suit by the Interstate Building & Loan Association of Atlanta, Ga against Fannie C. Powell. There was a decree for plaintiff and defendant appeals. Affirmed.

John J McMahan, for appellant.

Moore & Thomson, for respondent.

GARY A. J.

The master to whom this case was referred made the following report upon the facts: (1) That the Interstate Building & Loan Association of Atlanta is a corporation existing under the laws of the state of Georgia; (2) that said corporation has paid a license to the state of South Carolina to do business in said state, and had a local board or branch of the said association in the city of Columbia, in the county and state aforesaid, and that J. S. Coles, Jr. was the secretary and treasurer of said local board, and acted as the soliciting agent of the said association; (3) that Fannie C. Powell, through the agent of the local board, applied to the said Interstate Building & Loan Association of Atlanta for a loan of $2,000, which said loan was granted, and the money paid over to her by the local secretary; (4) that on the 2d day of May, 1895, at Columbia, S. C., Fannie C. Powell executed and delivered to the said Interstate Building & Loan Association of Atlanta her bond, in the penal sum of $4,000, on 20 shares of stock, assigned to the said association as collateral,--the condition of the said bond being that the said Fannie C. Powell, her heirs, etc., do pay to the association, as provided in its by-laws, rules, and regulations, "the sum of $32 monthly (of which $12 is for installments due on said twenty shares of stock, and the sum of $10 is for interest on the sum actually advanced, and the further sum of $10 is for premium on the sum actually advanced)"; (5) that on the said 2d day of May, 1895, for the securing of the bond referred to in paragraph 4 of this report, at Columbia, in the state of South Carolina, Fannie C. Powell executed and delivered to the said Interstate Building & Loan Association of Atlanta her mortgage of that tract of land described in the complaint; (6) that, under the terms of the application for loan, the bond and mortgage, the certificate of stock, and the constitution and by-laws of the said Interstate Building & Loan Association of Atlanta, the contract was to be performed in the state of Georgia, and I therefore hold that the contract is governed by the laws of that state, and not by the laws of South Carolina, in which state the loan was made and the bond and mortgage executed; and (7) that the condition of the said bond and mortgage has been broken, and that there is now due thereon (up to the date of this report) the sum of $2,816.95, as per the following statement:

Amount of loan ...................	$2,000 00
43 installments, at $12 .............	516 00
42 payments of interest, at $10 .....	420 00
42 payments of premium, at $10 ......	420 00
31 fines, at $2 ......................	62 00
Insurance ............................	20 00
	---------
	$3,438 00
Credit, amount paid in .............	$364 00
Credit, withdrawal value ............	504 00	868 04
	-----------	------------
		$2,568 96
Attorney's fee ......................		246 99
	---------	$2,816 95

It was admitted that the contract is not usurious if the law of Georgia controlled. The certificate of stock provides: "This certificate is issued to and accepted by the holder upon the express terms and conditions as printed on the back hereof." On the back of the certificate of stock is printed: "This certificate is issued to and accepted by the holder upon the following express terms and conditions: (1) The shareholder agrees to pay to the association sixty cents monthly for each share until such share matures or is withdrawn. (2) All monthly installments are due on the first day of each month, and must be paid on or before the fifth day of each month, beginning with the month following the date of this certificate. No notice of such monthly payments shall be required by or sent to members. All moneys due from the shareholder to the association are due and payable at the office in Atlanta, Ga., and to its secretary; provided, however, that payments may be made to a local treasurer in any town where not less than 100 shares are held; but in such cases the local treasurer will be deemed the agent of the local shareholder, and not of the association, and payments will be credited to shareholders only after receipt at the home office."

Extract from by-laws: "(1) The name of this association shall be 'Interstate Building & Loan Association of Atlanta,' and its principal office and place of business shall be in the city of Atlanta." "(20) All members desiring loans may apply for the same after making two monthly payments, exclusive of the admission fee. The rate of interest shall be six per cent. per annum, payable monthly and the rate of premium fifty cents per share, payable monthly. (21) All applications for loans must...