Trustees of Mutual Loan Ass'n v. Tyre

Citations

• 26 Del. 88
• 3 Boyce 88
• 81 A. 48
• 1911 Del. LEXIS 15

Syllabus

<p>1. Building and Loan Associations—Foreclosure—Nonsuit.</p> <p>A nonsuit will not be granted for failure of plaintiff to show that defendant, in an action by a building association to foreclose a mortgage, was a member of the association.</p> <p>2. Abatement and Revival—Dismissal and Nonsuit—Plea in Abatement—Necessity.</p> <p>That plaintiff insolvent loan association had no authority to sue, because the time within which it was authorized by the court to sue had expired, was not ground for a motion for a nonsuit, being matter for plea in abatement.</p> <p>3. ■ Building and Loan Associations—Stockholders—Relations.</p> <p>The contracts of subscription of stockholders in a building and loan association have the same force as those of stockholders in other corporations.</p> <p>4: Building and Loan Associations—Stockholders—Nature of Relation with Association.</p> <p>A stockholder in a building association, by borrowing money, does not alter his relation as stockholder, .except that his right to receive profits on the stock is transferred to the association to secure the loan, so that he becomes a debtor of the association; it agreeing to invest the dues and interest it receives from him so that his stock will finally be fully paid, when it must be applied to payment of the loan to him.</p> <p>5. Building and Loan Associations—Insolvency—Effect on Contracts.</p> <p>Insolvency of a building and loan association relieves a stockholder from payment of dues and determines loan contracts; the only thing left to be done being to wind up its affairs, so as to do equity to creditors, debtors, and stockholders.</p> <p>6. Building and Loan Associations—Insolvency—Rights of Borrowers.</p> <p>Upon winding up the affairs of an insolvent loan association, a borrower should be charged with the amount of his loan, with legal interest, but should be credited with sums paid, as interest on the mortgage according to the rule of partial payments, with the amount of the premium, and any