Roeser v. German National Building & Loan Ass'n

Citations

• 32 Pa. Super. 100
• 1906 Pa. Super. LEXIS 291

Syllabus

<p>Building and loan associations — Illegal premium — Usury—Interest.</p> <p>Where the by-law of a building and loan association provided that the premiums on all loans “shall be fixed at fifty cents per month for each $100 borrowed,” and at a regular and open meeting of the board of directors a member, through one acting for him and by his authority, bid a premium of that amount and was awarded the loan he applied for, without any other bid having been made, the court below held that the monthly premiums paid were illegal and usurious because they were not determined by competitive bidding, and that in the accounting between him and the association upon repayment of the loan the borrower was entitled to have them credited upon the loan, but was not entitled to have them credited as of the date of payment, nor to interest on them as of that date. Held, by divided court on the appeal of the member, the association not appealing, that the decree stating the account and crediting the payments as of the date of the decree, should be affirmed.</p>