41 N.J. Eq. 20 | New York Court of Chancery | 1886
The bill is filed for specific performance of an agreement by defendant to lend money to the complainant upon the security of mortgage of real property, to be given by the latter. It states that in 1873 the husband of the complainant, died, leaving four infant children, all yet alive and residing with the complainant, who is still his widow ; that in 1867 she purchased* with her own means, a lot of land, described in the bill, for $500,
The defendant demurs for want of equity, for want of parties, and for multifariousness.
As to the first point. This court will not compel specific per
But it is urged that in this case the circumstances are so peculiar as to- take it out of that general rule, and that the complainant, as a shareholder of the association, who has bid off a loan by agreeing to give a higher premium for it- than any other shareholder would give, has a vested right to it. A shareholder does not, by so bidding off (or purchasing, as it is sometimes called) a loan from a building association, become entitled to the loan, in any sense so different from that in which he would become entitled to it from an individual, who, on his application, should agree to make it to him, that he is entitled to the aid of this court in the former case while he would not be in the latter. The person who promises to lend is the one who is to be satisfied as to the security, and it would be very inexpedient, to say the very least of it, for this court to entertain suit to compel him to lend his money upon security which is unsatisfactory to him. In the case in hand the association, acting upon the advice of its counsel that the title was defective, refused on that ground, and on that ground alone, to make the loan. It is urged that the counsel was in error and that the title is good. But, obviously, the board of directors must be permitted to decline to lend the money of the association upon property when they are advised by their counsel that the title thereto is bad or defective. They are to be commended for acting upon the advice of their counsel. . There is no equity in the bill. The demurrer will be allowed