Stevens v. Pratt

Citations

• 101 Ill. 206

Syllabus

<p>!• Corporation—right to take real estate security for debts. The latter part of sec. 26, of the general Incorporation law of 1872, was not designed to prevent corporations from taking mortgages on real estate as security for debts. It would seem that the right to take such security, by the policy of our law, may be regarded as an incident to the right to create a debtl</p> <p>2. Same—former decision as to corporations for loaning money. That part of the opinion of the court in United States Mortgage Co. v. Cross, 93 m, 483, holding that it was a part of the policy of the law of this State, as shown by sec. 1 of the general Incorporation act of 1872, that corporations should not be formed in the State for the business of loaning money, is overruled.</p> <p>3. This court also erred in that case in holding that the first sentence of sec. 26 of the general Incorporation law of 1872, manifests a policy that foreign corporations were to have no right to loan money in this State.</p> <p>4. The clause in the Incorporation law of 1872, that “corporations may be formed in the manner provided by” that act, “for any lawful purpose, except banking, insurance, real estate brokerage, the operation of railroads, and the business of loaning money, ” was not intended to, and does not by implication, prohibit the formation of corporations for the purposes so excepted, under other acts. It only prohibits their formation under that act, and therefore does not show that such corporations are prohibited by the policy of the law.</p> <p>5. Same—foreign corporations, powers, etc., no greater than those of domestic. The general Incorporation law of 1872 neither grants nor prohibits the right of foreign corporations to do business in this State. It is simply a law imposing regulations and restrictions, and its meaning is, that where the general laws of this State provide for the organization of corporations, foreign ones of like character doing business in this State shall exercise no grea