Johnson v. Sharon Building Ass'n

Citations

• 16 Pa. Super. 311
• 1901 Pa. Super. LEXIS 65

Syllabus

<p>Building and loan associations — Loans—Application of payments on stock.</p> <p>Payments of instalments upon the stock of a building and loan association are not ipso facto payments upon a loan secured by a mortgage to the association for which the shares are assigned as a collateral security. The mortgagor may apply his payments on stock to the loan, a license to do so being implied in the nature of the relation between building and loan associations and their shareholders; and the association may also make such application by virtue of the assignment of the stock as a collateral security for the loan. In order to effectuate such an application an act of appropriation must be made by one or other of the parties, and strangers to the transaction can require nothing which one or other of the parties did not.</p> <p>Where a stockholder in a building and loan association executes a mortgage to the association and pledges his stock as security for the payment of the mortgage debt, and subsequently executes a second mortgage to a stranger, and thereafter assigns his stock to a third person, and the building and loan association by a resolution in proper form applies the shares in part payment of the amount due on the loan, and at a sheriff’s sale of the mortgaged property, a fund is raised not sufficient to pay the loan, the association has the right as against the assignee of the stock to apply the entire value of the stock to the payment of its mortgage, to the benefit of the second mortgage.</p> <p>Equity — Marshaling assets — Debtor and creditor.</p> <p>Where a creditor has a lien upon two funds, both of which are subject to junior liens, he is not obliged to resort to one rather than the other to satisfy his debt.</p> <p>Building and loan associations — Notice of withdrawal by assignee of stock.</p> <p>Where an owner of shares of a building and loan association has assigned his shares to the association as collateral for a loan, and subsequently has assigned them