Goodman v. Durant Building & Loan Ass'n

Citations

• 71 Miss. 310

Syllabus

<p>1. Building and Loan Associations. Incorporation. Powers. Obligation of members.</p> <p>Under the general law and without a special statute, building and loan associations may be incorporated, with customary and appropriate powers not inconsistent with law, the vital principle being the compounding oí monthly receipts for -the mutual benefit, with the imposition oí a fine, an agreed sum, as liquidated damages for every default in payment. Members may bind themselves by such a scheme, and will be held to performance of what they have agreed.</p> <p>2. Same. Interest on premiums. Invalid contract.</p> <p>It is not permissible for a building and loan association to collect interest on premiums, though stipulated for in the contract. Sullivan v. Loan Association, 70 Miss., 94.</p> <p>3. Usury. 6We 1892, % 4, 2348. ¡Existinsj contracts. Defenses preserved.</p> <p>The change made by $2348, code 1892, exempting building and loan associations from the operation of the penalty against usury, did not free prior illegal contracts from objection, for \\ 4 of the code preserves, unaffected, any existing cause of action or defense.</p> <p>.4. Trust-deed. Place of sale, (¡ode 1892, § 2484; applicability.</p> <p>Section 2484, code 1892, requiring a sale under trust-deed to be made at the place fixed for sheriff’s sales if the deed does not name the place, will not control where the trustee is vested with discretion to fix the place; it applies only when the deed is silent on the subject.</p>