Leechburg Building & Loan Ass'n v. Kinter

Citations

• 233 Pa. 354
• 82 A. 498
• 1912 Pa. LEXIS 830

Syllabus

<p>Building and loan associations — Insolvency—Bights of borrower.</p> <p>1. The duty of a trustee of an insolvent building and loan association is to wind up the affairs of the association in such a manner as to do equity between it and its creditors and between the stockholders. It is the duty of the trustee to require a borrower to repay what he had actually received with interest, and to allow him after all the debts are paid a pro rata dividend with the nonborrowers on the payments made on his stock.</p> <p>2. Where the stockholder of a building and loan association borrows from the association on a mortgage, pledges his stock as collateral security and agrees to pay monthly installments of dues and interest, the payment of dues on stock is not a payment on account of the loan.</p> <p>Affidavit of defense — Practice, C. P. — Averments of conclusions.</p> <p>3. Averments in an affidavit of defense of conclusions merely based on a misconstruction of writings and wholly inconsistent with the writings, will be disregarded by the court.</p>