Lepore v. Twin Cities National Building & Loan Ass'n

Citations

• 5 Pa. Super. 276
• 1897 Pa. Super. LEXIS 234

Syllabus

<p>Building and loan associations — Withdrawal rights of members.</p> <p>A member of a building association in good standing has a right to withdraw and thereby entitle himself to the rights and privileges of a withdrawing stockholder. After notice given he ceases at the expiration of thirty days to be a member and becomes a simple creditor subject to the laws regulating the rights of withdrawing stockholders, after withdrawal.</p> <p>Withdrawing stockholders — Bights those of a creditor.</p> <p>A stockholder, having perfected by notice his withdrawal, has a right to sue the association and recover judgment, as any other creditor might do, and the denial of funds to meet his demand is no ground for the refusal of judgment against the association.</p> <p>Bight of withdrawing stockholder — Absence of by-laws —Interest.</p> <p>In the absence of by-laws defining and regulating the matter, a withdrawing stockholder may recover the amount paid in by him as dues and six per cent interest, the association having alleged in a published statement the accumulation of large profits and there being no denial in the affidavit of defense of the correctness of the financial statement,</p> <p>Words and phrases — Profits—Affidavit of defense.</p> <p>Profits import the net amount made after deducting any proper expense incident to a business.</p> <p>In a suit by a withdrawing stockholder where the company has declared large profits as earned, an affidavit of defense is insufficient which alleges as a set-off to plaintiff’s claim a right to deduct a gross amount as plaintiff’s share of proper expenses; no by-laws, by which such deductions are authorized, having been set out, nor what the expenses were incurred for, nor the gross amount.</p>