Erthal v. Glueck

Citations

• 10 Pa. Super. 402
• 1899 Pa. Super. LEXIS 295

Syllabus

<p>Building association — Paid-up value of stock — Attachment execution.</p> <p>There having been an election by a stockholder to appropriate building association stock to the payment of a mortgage, and an acceptance of an assignment by the association upon the express trust that it should be so applied, it follows that instalments paid upon the stock are to be taken as paid upon the loan and a purchaser at sheriff’s sale under a junior judgment takes title subject to the balance unpaid upon the mortgage which is to be ascertained by allowing credit upon the loan for the value of the stock which the parties by their agreement have appropriated to its payment. The value of the stock is not subject to attachment in the hands of the building association at the instance of another creditor.</p> <p>Building association — Mortgage—Applications of instalments on stock.</p> <p>Payment of dues upon building association stock does not, ipso facto, work an extinguishment of so much of the mortgage; the debtor may so apply it but the payment itself is not an application of the money to the reduction of the mortgage. The law does not against the consent of the debtor apply the instalments paid by him upon his stock to the discharge of his indebtedness for the money borrowed. In the absence of an appropriation by either party a purchaser at sheriff’s sale of the mortgaged premises cannot compel an application of the collateral security to reduce the mortgage.</p> <p>In the absence of evidence of authority in the secretary of a building and loan association to bind the association by statements as to the amounts due upon its mortgages, such statements are not binding. Such authority is not to be inferred from the nature of the office.</p>