Tbe defendant, Interstate Building & Loan Association, is a' corporation organized under tlie laws of the State of Georgia, and with its prin
In 1893, having made the required payments up to that time, Mebane sold and conveyed the real estate to one Province, subject to this trust deed. At the same time he represented that the agreement between himself and the association was that the stock in the certificates, of which he also assigned his interest to this purchaser, would become matured in eighty-four months from the date of the loan. Relying on this assurance, but demanding no obligation to make it good, Mebane executed and delivered to Province a paper writing, in which he undertook that if this stock did “not mature in thirty months after the 10th
Province and his representatives from that time forward paid the installments as they accrued under the original contract, ' until the full time of eighty-fóur' months had passed, when a cancellation of the trust deed was demanded of the association' and refused by it, for the reason that i't would take fourteen more monthly installments of dues and interest, even if met promptly, or ninety-eight- in all, to mature this stock.
The parties refusing to make any additional payments, the association caused an advertisement to -be made of a foreclosure sale of the ■ property covered by the trust deed. The vendee, Province, having in the meantime died, the bill was filed by his representatives.
The bill - makes as parties defendant the association, the trustee • in the -deed of trust, lie-bane, the vendor of Province,' and the surety in the obligation which he executed to- Province. It avers in • terms what has heretofore been set 'out.It alleges that notwithstanding the agreement that the stock should mature in eighty-four monthly payments, all of which had been made, yet the association was' claiming a large balance, and seeking to enforce its payment by a sale of the property. It was asked that this sale might be
The record shows that payments for that number of months did not mature this stock, but that it required payments for ninety-eight months, not only to bring it to a par value, but also the stock of all other members of this association belonging to the same class'.
The testimony as to the agreement upon which the present contention of complainants is made, was incompetent under at least two well-settled rules of evidence, yet as it was not objected to in the Court below, we will take it as established that notwithstanding the written contract, yet when Mebane subscribed for stock and made his loan, the officers of the association agreed with him that it should be matured witbin the period claimed. Can this agreement avail him or the complainants on this record ?
The theory on which associations like the present are organized, and the rule of law as applied to them by all the cases, is that they are mutual in their character, and the members share in the common gains and losses. The associa
Upon sound policy, as well as the authority of these and other cases which might be referred to, that conceding all that is claimed as to the agreement in question, we hold that it was ultra vires,
The bill will be dismissed so far as the Interstate .Building & Loan Association is concerned, but the cause will be remanded to the Chancery Court in order that the liability of the defendant, Mebane, in this contract to Province, may be ascertained and proper decrees be entered with regard thereto. The costs of this Court and of the Court below will be paid by S. A. Me-bane.