59 N.Y.S. 148 | N.Y. Sup. Ct. | 1899
The testimony before me is uncontradicted that Mr. Rockefeller advanced the amounts in question as temporary loans, and that they were received by the treasurer or representatives of the defendant with the express written statement that they were so received as temporary loans. Whatever presumption exists, if any, that payments made to religious corporations are intended as gifts, and not as loans, is clearly overcome by the evidence in this case. It is conceded that the several amounts so advanced were paid out by the defendant for claims actually owing by the defendant. The advancements were not made in view of contemplated expenditures, but were advanced and used in payment of accounts already made and owing by the church. There is no evidence before me showing that the board of trustees of the defendant as a body knew of the loans being made, or that they ever with knowledge ratified the action of their treasurer or representatives in obtaining the loans. Religious corporations are governed by the same general rules of law and equity as other corporations. The presumptions of fact applicable to religious corporations are not in all cases the same as the presumptions of fact applicable to other corporations. There is no presumption that a treasurer of a religious corporation has power to borrow money, sign notes, and bind the corporation. It was consequently held in the cases of People’s Bank v. Saint Anthony’s Roman Catholic Church, 109 N. Y. 512, and Columbia Bank v. Gospel Tabernacle Church, 127 id. 361, that a recovery could not be had against a religious corporation on a promissory note without showing authority on the part of the person signing the note to bind the corporation. An executory agreement of a religious corporation cannot be enforced without proof of authority in the person executing the agreement to execute the same in the name of the corporation or without showing ratification by the corporation with knowledge of all the facts. The contention of the defendant in this case is to the effect that if the treasurer of a religious corporation should in fact borrow money to pay indebtedness incurred for the legitimate purposes of the corporation, and the corporation should thereafter use the money in payment of such indebtedness, they woxild not be required to repay
Judgment accordingly.