Provident Life & Trust Co. v. Gratz

Citations

• 271 Pa. 133
• 114 A. 498
• 1921 Pa. LEXIS 469

Syllabus

<p>Taxation — Insurance companies — Life insurance — Loans to policyholders — Collateral notes — Acts of June 17, 191$, and June 1,1911.</p> <p>1. Where money is paid over by a life insurance company to policyholders, and the company receives in each case a promissory note of the policyholder, payable on demand, together with an assignment of the policy as collateral, hut without any stipulation against personal liability on the part of the borrower, the transactions will be considered a loan, and taxable under the Act of June 17, 1913, P. L. 507.</p> <p>2. In such case, the fact that the company’s uniform practice is to deduct the loans, when not paid, from the policies, does not deprive it of the right to bring suit upon the note; nor is the opinion of the officers of the company that, as matter of law, the borrowers incurred no personal liability, important.'</p> <p>3. In such ease, the Act of June 1, 1911, P. L. 581, 593, cl. 8, pec. 25, providing, under certain conditions, for advancement of money to policyholders on the sole security of the policies, does not apply.</p>