McKenney v. Diamond State Loan Ass'n

Citations

• 13 Del. 557
• 8 Houston 557
• 18 A. 905
• 1889 Del. LEXIS 14

Syllabus

<p>Loan Associations— By-Laws— Withdrawals.</p> <p>The provisions in the by-laws of a loan association, requiring a stockholder to give one month’s notice of his intention to withdraw, may be waived by the company, and an oral notice accepted.</p> <p>A person has the right to treat the by-laws given to him on his becoming a member of the association as all the by-laws such association has, and he is not bound to take notice of modifications of such by-laws, with respect to withdrawing, on the record of the company simply, without further notice to him ; which notice must be proven by the defendant company to have been given.</p> <p>The plaintiff, a member of the association, having given verbal notice of his intention to withdraw from the company, and the secretary of the company marking, in a book kept for that purpose, “ December 14, 1887, McKenney,” and it being proved that the company had theretofore acted upon such notice as a substantial compliance with the requirement of the by-laws contained in the book given to the plaintiff when he became a member, the company cannot set up another by. law on its record, of which the plaintiff had no actual notice, to defeat plaintiff in his action. Oral notice given to any one acting for the secretary in his absence, and at his place of business, would be as effectual as if given to the secretary himself.</p> <p>A withdrawing member of a loan association in failing circumstances is entitled to the present worth of his stock, less fines, interest, and insurance due from him, as provided by the by-laws, but not losses and expenses.</p>