Ottawa Mutual Loan & Savings Ass'n v. Merriman

Citations

• 67 Kan. 779
• 74 P. 256
• 1903 Kan. LEXIS 330

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Building and Loan Association — Whether Stockholder or Creditor — By-laws Construed. One who invests money in a building and loan association, receiving as evidence of his investment a document in two parts, one in the form of a aertificate of deposit for the amount paid, drawing annual interest based on the earnings of the business, the other in the form of a certificate that he is a member of the association and the owner of a share of its stock, is a stockholder and not merely a creditor, unless the by-laws forbid such conclusion; and held, that the by-laws of the association here involved do not forbid it.</p> <p>2. - Subsequent By-law Requiring Withdrawal Held Invalid. The directors of a building and loan association cannot require a member to withdraw his investment except in pursuance of a valid by-law. A by-law passed after his purchase of stock, permitting them to require such withdrawal of any member, to be designated at their pleasure, such selection not being based upon any equitable principle or upon any rule of general application, is, as to him, unreasonable and inoperative.</p>