129 Ky. 754 | Ky. Ct. App. | 1908
Affirming.
The four questions involved in this appeal are: First, the right of a building association to acquire such real estate as may be necessary and proper for carrying on its legitimate business; second, the right of such a budding association to use the money accumulated, or any part thereof, in paying for such real estate; third, can such building association purchase more real estate, or erect or remodel a building thereon, so that the same shall contain more space or room than is sufficient for carrying on its legitimate business, and if it did so build more room than was necessary for the legitimate and proper conduct of its business, would it have the right to rent out such unused or unoccupied space ? and, fourth, if it so acquired real estate, could it hold it for a longer period than five years? These questions were raised by the Home Savings Fund Company Building Association of Louisville, Ky., when negotiating with appellees for the purchase of a lot 22y2 feet front by 97 feet deep on Green street, east of Fifth street, in the city of Louisville. Said association was chartered by an act of the Legislature in 3889, under the corporate name of “Home Savings Fund Company.” Laws 1889, p. 477, c. 1426. Among the powers conferred upon it by its charter is the right to “have, purchase and receive, possess, enjoy and retain, sell, convey or otherwise dispose of lands,” etc. On September 27, 1897 , the said association amended its articles of' incorporation by adding thereto the words “Building Association” to comply with the provisions of section 856 of the Kentucky Statutes of 1903.
Considering all three of these sections together, the-association has the right to acquire and hold such real
The next question is, has the association the power to use any part of its accumulated moneys for the purchase of such real estate? Clearly the power or right on the part of the association to purchase carries with it the right to pay for the real estate; other
The third question is, has the association the right to erect, remodel, or own a building of more than sufficient capacity to accommodate its own business and to rent out the excess? There is nothing in the Constitution, charter of the association, or statutes placing any limitation upon the character of a building which a corporation may erect as a home in which to conduct its business. A corporation conducting a business of the character of that in which appellant is engaged naturally expects its business to grow and expand from time to time, and, in building a home, it would be exercising but a short-sighted judgment if it did not make provision for the future by building a home large enough to take care of its expanding business, and hence, even if it should build a house larger and roomier than its present needs or interests require, it would be acting clearly within the exercise of its cor
For the reasons indicated, the judgment of the lower court is affirmed.