Stuart v. Barry

Citations

• 60 Pa. Super. 370
• 1915 Pa. Super. LEXIS 199

Syllabus

<p>Building and loan associations — Usurious mortgage — Conflict of laws — Usury—Interest—Assignment of stock.</p> <p>Where a building and loan association incorporated under the laws of Virginia, but domiciled and transacting all its business in the District of Columbia takes a mortgage from a member, payable in the District of Columbia, the Pennsylvania courts will construe the contract according to the laws of the District of Columbia, although the -mortgage itself provided that it shall be construed according to the laws of Virginia. If such a mortgage is invalid under the usury laws of the District of Columbia, it will not be enforced by a Pennsylvania court, although the mortgage is valid under the laws of Virginia.</p> <p>Where a member of a building and loan association, on borrow-’ ing money from the association, assigns his stock to the association absolutely, and not as collateral, he ceases to be a member, and any payments subsequently made by him must be applied to the payment of the mortgage and the interest thereon. If such payments amount to the mortgage and interest, the borrower cannot be required to make further payments, although the mortgage recited that the money was advanced to “redeem” the stock.</p>