Hammerquist v. Pioneer Savings & Loan Co.

Citations

• 15 S.D. 70
• 87 N.W. 524
• 1901 S.D. LEXIS 86

Syllabus

<p>A stock certificate issued by a loan company stipulated that on compliance with its by-laws and performance of all agreements it would pay on a specified date $100 for each share of such stock. The conditions on which the certificate was accepted nowhere suggested that the value of the matured stock was to depend on the financial condition of the association. The holder of the certificate was to have no interest in the affairs of the company, nor any control over them, and was to assume no further liability, except as stated in the certificate and by-laws. The company’s by-laws contained no provision inconsistent with the definite contract expressed in the certificate. Representations made part of the contract declared that such company matured its stock at a definite time. Held, that on the holder’s compliance with the contract the company was bound to pay him, at the expiration of such period, the specified value of such shares, and not their value based on the company’s financial condition.</p>