Workingman's Loan & Building Ass'n v. Heaton

Citations

• 233 Pa. 173
• 82 A. 78
• 1911 Pa. LEXIS 479

Syllabus

<p>Building and loan association — Fines—Contract—Directors and officers —Forfeiture—Act of April 10,1879, P. L. 16.</p> <p>1. On a scire facias sur mortgage a claim by the defendant that the plaintiff, a building and loan association, had agreed not to impose any fines upon him after a certain date in consideration of his making certain monthly payments is not supported and cannot be sustained as a contract, where all the defendant shows is that he was desirous of making; such an agreement, and that certain individual members of the board of directors of the association had informed him that his proposition had been acceded to; and where the alleged agreement is contrary to the by-laws of the association and the written contract of the parties, and finds no sufficient support from the minutes of the association.</p> <p>2. A building and loan association may impose fines on a borrowing member after six months’ arrearages, where under the by-laws of the plaintiff association as well as under the terms of the bond and mortgage given to secure the loan', the stock of a borrowing member does not become forfeited at the end of six months’ default unless so declared, and the delay.was at the member’s own application.</p> <p>3. There is nothing in any of the acts of assembly relating to building associations which compels a forfeiture at the expiration of six months, or which limits the time for imposing fines.</p> <p>4. The word “may” in sec. 5 of the Act of April 10, 1879, P. L. 16, is to be construed as a word of permission.</p>