Thompson & Co. v. Gillison

Citations

• 28 S.C. 534
• 6 S.E. 333
• 1888 S.C. LEXIS 82

Syllabus

<p>1. A building and loan association lent its money on the advance discount plan, at the rate of $1 per share, to be paid every month until the association should wind up, but with a provision that the amount of interest should in no case exceed at the winding up the rate of ten per cent, a year, the rate allowed by law. Held, that the association could not at the winding up take out of the member’s shares of stock, assigned as collateral security, any more than would be sufficient to make his interest payment equal to 10 per cent, on the actual amount of the loan received.</p> <p>2. A party purchased for $308.11 fourteen shares of stock in a building and loan association which by its charter would divide out its assets at the expiration of 89 months thereafter, and upon such shares took a loan of $2,800 at a discount reserved of $700, thus receiving only $2,100; and he agreed to pay on every share $1 on his stock and $1 for interest, during every month until the association should wind up, and then to assign and surrender his shares to the association. But the by-laws provided that in no event should the interest paid exceed the rate of 10 per cent, as allowed by law. Held, that the loan was not usurious, for his payments on stock and as interest for the unexpired term would not exceed the rate allowed by law; and even should his stock then be worth $200 a share, the by-law would not permit it to be applied to the debt beyond an amount that would make his interest payments equal to 10 per cent.</p> <p>3. When a bond provides for counsel fees to be paid by the obligor in case the bond is collected by suit, he is liable therefor, even when the litigation is between himself and the obligee as co-defendants to an action to foreclose a junior mortgage.</p>