17 Utah 122 | Utah | 1898
It appears from the record that on November 1, 1890, the plaintiff association issued to the defendant Fowble a certificate declaring him to be the holder of 30 shares of its capital stock, which at maturity were to be worth $100 per share. The certificate, it appears, was issued in consideration of an entrance fee, and of a monthly installment of 65 cents to be paid to the association by the holder for each share, on or before the last Saturday of each month, for 96 months. On November 10, 1890, Fow-ble, being desirous of obtaining money on his certificate, executed to the association a bond in the penal sum of $6,000, conditioned to pay to it or its attorney the sum of $3,000 in eight years from date thereof, and the further sum of $12.51, contribution of interest and $12.51 contribution of premium, which interest and premium payments were to commence on November 29, 1890. and be made on or before the last Saturday of each and every month thereafter; and if so made, then the obligation was to become void, otherwise to remain in full force and effect. Simultaneously with the execution of this bond, Fowble and his wife executed a deed of trust to the association on certain real property situated in Ogden, Utah,
It is insisted for the appellants that the $512.50 paid in monthly installments as premiums on the stock should have been allowed by the court as a credit on the principal sum of $2,700, which sum the court found to be the •amount borrowed, because, as appears to be maintained, the payment of these premiums had the effect of extin.guishing the debt, to the extent of the amount so paid. For the respondents it is contended that under the contract of the parties all the moneys were to be paid in the ¡state of New York; that this constituted it a contract made and to be performed in that state, and that therefore, the rights of the parties are to be measured and enforced according to the laws of the state of New York; and that under those laws the association had a right to take premiums so paid, and was not compelled to account for them to the appellants in this proceeding. The respondent, to maintain its contention, appears to rely on the clause in the deed of trust which provides for the installments “to be paid unto the treasurer of said association according to the conditions of the bond this day executed and delivered by the said Otis E. Fowble and Elizabeth Fowble to the said party of the third part,” and on that part of the bond which states in effect that Fow-ble, of Ogden, is held and bound unto the association,
Fowble having thus entered into a contract with the association which is governed by the laws of this state, the appellant Mary Boreman by the clause of assumption contained in the deed of conveyance undertook no greater or different obligation than that which had devolved-upon her grantor. The question therefore is whether, under the contract and the laws of Utah, she, being merely a purchaser of the mortgaged premises, who has undertaken to discharge the obligation of her grantor under his contract with the association (he having been one of its stockholders), is entitled, upon the foreclosure of the deed of trust, to be credited on the principal debt with the premium installments paid on the stock. A similar question was before this court in Sawtelle v. Building Co., 14 Utah, 443, and we there said: “The ultimate object of the monthly payments is the extinguishment of the debt. This is true, regardless of the efforts of the agents of such corporations to obscure the relationship of the payments to the principal sum. Whatever may be their ingenious devices to show to the borrower that the loan in some mysterious way pays itself without his knowledge, •and that the monthly payments of the dues are a profitable investment in stock, the fact is that the loans are
From the foregoing considerations we are of the opinion that the defendants are entitled to credit on the debt for the $512.50 paid as premiums on the stock for the loan, and that the court erred in not allowing the same. We do not deem it necessary to discuss the other questions presented. The case must be remanded with directions to the court below to enter judgment in accordance with this opinion and set aside its former judgment.