Ch. Tyrrell L. & B. Ass'n v. Haley

Citations

• 139 Pa. 476
• 20 A. 1063
• 1891 Pa. LEXIS 1016

Syllabus

<p>[To be reported.]</p> <p>1. When stock in a building association lias matured, the debt oí a borrowing stockholder is paid, and he is entitled to a return of the securities given therefor; and, if such maturity has occurred in point of fact, even though not declared by the association, it has no right to recover a judgment against one of its stockholders for the amount of his loan.</p> <p>2. The fact that the constitution and by-laws of such an association provide for a division of assets at a meeting of the stockholders “ when it shall be ascertained that” the stock has matured, does not preclude a borrowing member from showing, when sued upon a security given for the loan, that on a proper application of the profits of the association his stock is worth par.</p> <p>3. It may be that such borrower would be entitled to a mandamus to compel the corporation to make a proper application and division of profits and to declare the stock matured, or might file a bill in equity for a like purpose; but he is not bound to assume the position of an actor, and to involve himself in the expense attendant upon either of those proceedings.</p> <p>4. For, if his stock has matured, he is entitled to stop paying and rely upon the surrender of his securities by the association at the proper time; and if, instead of so doing, the association bring suit thereon, he may set up an equitable defence and show that the stock has matured, such defence being a substitute for a bill in equity for that purpose.</p> <p>5. In passing upon the refusal of an offer to show by a witness, not a member of the plaintiff association, that on a certain date the value of each share of its stock was $218.24, the Supreme Court will assume the witness had sufficient knowledge upon the subject to enable him to sustain the offer, where nothing was shown to the contrary and no objection to his competency was made.</p>