Folsom Building & Loan Ass'n v. Gogel

Citations

• 24 Pa. Super. 539
• 1904 Pa. Super. LEXIS 230

Syllabus

<p>Building and loan associations — Withdrawals—Borrower in arrears — Act of April 10, 1879, sec. 4, P. L. 16 — Secretary’s books.</p> <p>A defaulting borrowing stockholder of a building and loan association, whose stock is pledged to the association as collateral, is not entitled to withdraw and receive the same share of the estimated profits as an ordinary withdrawing stockholder would be entitled to receive.</p> <p>The words “such borrower” in the proviso in section 4 of the Act of April 10, 1879, P. L. 16, apply to a borrower who has repaid his loan, and have no application to a borrower who has not only not repaid his loan, but is in arrears, both as to dues and fines, for several years.</p> <p>A defaulting borrowing stockholder is not relieved from paying fines because of the neglect of the secretary of the association to charge such fines against him on the books. The secretary’s record and minutes are not books of original entry which are the evidence of the charges therein made. The dues and fines are payable under the by-laws, and, whether entered in the books or not, are due and payable by a defaulting member.</p>