76 S.E. 532 | N.C. | 1912
The facts are sufficiently stated in the opinion of the Court by MR. CHIEF JUSTICE CLARK. Controversy submitted without action. The defendant R. B. Blalock, on 1 April, 1903, subscribed for $1,500 in the capital stock of plaintiff Building and Loan Association. On 1 June, 1903, he borrowed the sum of $1,500, and as security for said loan assigned said stock as collateral security, and as additional security he and his wife executed a deed in trust on certain realty. In February, 1909, the directors of the plaintiff company discovered that the association had lost a sum of money which would require two additional monthly payments on each share of stock to make good said loss in addition to the eighty-four payments theretofore collected. Assessments for two more months were accordingly directed, amounting to $45 against Blalock. The defendant has paid all his monthly assessments and interest except said assessment of $45, which he refused to pay. The payments made by defendant, if applied solely to his loan, would have been sufficient to pay off said loan, with interest. The other stockholders in said series, including such stockholders as were borrowers, have paid the assessment and interest on their loans for said extra two months and their stock has been matured and paid off. The defendants have demanded of the plaintiff that the bond and the deed of trust be canceled and satisfied on the record. This the plaintiff refused to do until said Blalock shall pay his pro rata part of said loss, which the plaintiff claims he is legally required to do.
The court below held that, it appearing upon the case agreed that defendants had paid to the plaintiff association a sum more than sufficient to pay off the principal and the interest accruing (492) thereon, the deed of trust should be canceled.
It is true that building and loan associations are governed by the usury law, like every one else. Meroney v. B. L. Assn.,
In Meares v. Duncan,
The defendant being a corporator, the money he has paid must first be credited in discharge of his pro rata share of the losses of the concern just as, in a contrary event, he would have been credited with his share of the profits, and after payment of such losses the mortgaged property as well as himself is liable for the assessments necessary to mature his stock, and neither the bond nor mortgage should be canceled until the balance due by him of $45 and interest thereon is paid.
The judgment of the court below is therefore
Reversed. *403