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Loans made by Loan Association at an arbitrary premium are usurious; when the amount paid exceeds legal interest.
Jameson, Receiver, v. Jurgens, 195 Ill. 86. Interest, fines and premiums lawfully collected by Loan Associations are not considered as usurious.
Rhodes v. Missouri S. & L. Co., 173 III. 621 (624). Loan and Homestead Act held constitutional and loans made according to its terms not usurious.
Freeman v. Ottawa B. H. & S Ass'n, 114 Ill. 182.
As to taxation of.
Amendment of 1895 (Revenue Act) as to taxation of building and loan stock is not retroactive so as to require listing of stock for years before its passage.
In re Appeal of Wilmerton, 206 III. 15. Act of 1901 exempting pledged loan association stock from taxation held unconstitutional. Act of 1895, as to taxing loan association stock and real estate held valid. Stockholders of Loan Association must pay tax on their stock. The real estate is taxed to the association.
In re St. L. Loan & I, Co., 194 III. 609. Taxing stock and notes of Loan Associations and also taxing the property they represent is not double taxation.
Peoples L. & H. Ass'n v. Keith, 153 Ill. 609 (624). Stock and notes of a Loan Association cannot be declared exempt from taxation by Legislative Act. (Con. Art. 9, Sec. 3.) Sec. 11, Loan and Homestead Act void.
Peoples L. & H. Ass'n v. Keith, 153 Ill. 609.
Rules as to loans, premiums, etc.
To bring a loan at a premium within the statute it is only necessary that a Homesteal Loan Association give all parties seeking loans an opportunity, in open meeting to bid for loans, but bidders need not be personally present.
Hotchkiss v. Norwood Park Ass'n, 229 I11. 248.
A by-law dispensing with bids for loans must be passed before a Loan Association may loan its money at a fixed rate and a premium.
Cobe v. Guyer, 237 Ill. 568. Shareholders seeking loans are under no duty to see that their loans are legally made. And may plead usury when they had no knowledge that the loan was improperly made.
Free Home Ass'n v. Edwards, 223 Ill. 126. Loans made in pursuance of a resolution of the directors of a Building and Loan Association are not properly made, and the defense of usury is good. Loans must be made according to the by-laws and statutes.
Free Home Ass'n v. Edwards, 223 Ill. 126. One bidder for a loan is sufficient, if all are given an opportunity to bid, under Sec. 8 of the Home and Loan Act.
Home Bldg. & Loan Ass'n v. McKay, 217 Ill. 551. Loan and Home Associations duly organized and authorized to make loans at greater than legal interest, if done according to statute; and may receive premiums.
Home Bldg. & Loan Ass'n v. McKay, 217 Ill. 551. Stockholders only, may bid for a loan in a Homestead Association, but if one not a stockholder is permitted to bid and secure a loan he cannot set up the unlawfulness of the loan as a defense to foreclosure; and that the interest was usurious.
Home Bldg. & Loan Ass'n v. McKay, 217 III. 551. Section 6a of the Loan Association Act of 1897 does not apply where a loan contract has been fully paid before shares have reached maturity.
Assets R. Co. v. Heiden, 215 Ill. 9. A Loan Association that has made an unauthorized loan, and which has been repaid by the borrower, cannot refuse to release the mortgage until a release fee is made, none being provided for in the contract.
Assets R. Co. v. Heiden, 215 Ill. 9.
Loans by Loan Associations must be made strictly according to statute. Private contracts are not lawful.
Borrowers' Bldg. Ass'n v. Eklund, 190 I11. 257. Money advanced to member of a Loan Association on his note and mortgage is a loan to the member.
Borrowers' Bldg. Ass'n v. Eklund, 190 I11. 257. One holding property as trustee in order to get a loan on it from a Loan Association, will be held personally where his trust does not appear-when.
Novak v. Vlastenec Bldg. Ass'n, 167 Ill. 264. Loan by a Loan and Homestead Association for the use of a private corporation but made directly to an individual for the use of the corporation, and secured by a trust deed of the corporation, held good, not ultra vires.
Kadish v. Garden City L. & B. Ass'n, 151 I11. 531. Building and Loan Associations may loan money for other purposes than building homes.
Kadish v. Garden City L. & B. Ass'n, 151 Ill. 531 (537). Notice of withdrawal to a Loan Association creates no rights not existing prior to such notice.
Wetherell v. 31st St. B. & L. Ass'n, 153 Ill. 361. Doubtful as to right of a borrower from a Loan Association to withdraw under Sec. 6 of the Building and Loan Association Act.
Mutual B. & L. Ass'n v. Tascott, 143 Ill. 305 (314).
As to real estate.
A sale of real estate made by the President and Secretary of a Loan Assocition binds the association in the absence of anything to disclose lack of authority by such officers.
Domestic Bldg. Ass'n v. Guadiano, 195 Ill. 222. Loan Associations have no power to acquire real estate by trade or purchase and assume a mortgage on same; so on
foreclosure no deficiency decree will be given against such association. Contracts for deeds are void.
Nat'l Home B. & L. Ass'n v. Home S. Bank, 181 III. 35.
Fines and penalties.
Fines imposed by Loan Associations for failure to pay installments or interest must be reasonable—where not fixed by statute-held unreasonable.
Vierling v. Mechanics' S. Ass'n, 179 Ill. 524. Members of Loan Associations are not liable for fines imposed after their stock has been forfeited for non-payment.
Armstrong v. Douglas Park B. Ass'n, 176 I11. 298.
Mortgages, foreclosures, etc.
A homestead is not created in mortgaged land as against the mortgagee, where the mortgagor does not go into possession until after the mortgage is executed. A secret prior intent to occupy does not create a homestead.
Home Bldg. & Loan Ass'n v. McKay, 217 Ill. 551. Mistakes in the mortgage of Loan Association, making interest usurious without the intention of the association so to do, will be corrected on foreclosure.
Lurton v. Jacksonville L. & B. Ass'n, 187 III. 140. Bill to foreclose mortgage of Loan Association-equities in such case. The mortgagee must be credited with installments paid, with interest; but does not share in earnings of the association.
Vierling v. Mechanics' S. Ass'n, 179 III. 524.
Receivers for-Rules as to.
Superior Court, Cook County, has jurisdiction to appoint a receiver for a Loan and Homestead Association under Sec. 25 of Homestead and Loan Act, although the act names the Circuit Court.
Cobe v. Guyer, 237 Ill. 516. A Loan and Homestead Association may employ an attor
ney to resist the appointment of a receiver even though the Association is in the hands of the State Auditor; and in case a receiver is appointed and the association affairs settled up, the fee of such attorney is a legitimate claim against the association assets, and is a liability assumed by one who buys the association's assets and agrees to pay outstanding claims.
Assets Realization Co. v. De frees, 225 Ill. 508. Under the act of 1879 and amendments of 1891 and 1893, by-laws for Building and Loan Associations are to be enacted at a meeting of shareholders only. Directors have no authority to pass by-laws.
Free Home Ass'n v. Edwards, 223 Ill. 126. Contract by Loan Association to pay 6 per cent for use of money is ultra vires, but not being mal in se or prohibited, an action for money had will lie.
Brennan, Receiver, v. Gallagher, 199 Ill. 207. Loan Association has no authority to borrow money and pay interest for it.
Columbus Bldg. Ass'n v. Kriete, 192 III. 128. Loan Associations have no power to amend their by-laws. (But see amendment of 1899. Hurd 1908, p. 544, par. 80.)
Fritze v. Equitable B. & L. Society, 186 III. 183. Action by receiver to compel member of Loan Association to repay funds secured by withdrawal during insolvency. Recovery denied. Receiver of Loan Association has no authority to sue a member for repayment, who withdrew during insolvency.
Young, Receiver, v. Stevenson, 180 III. 608. Receiver for Loan Association represents the association and not the stockholders, and succeeds to actions of the association only.
Young, Receiver, v. Stevenson, 180 III. 608. Receiver of a Loan Association will be dismissed on motion where it appears the association made its assets sufficient and stopped acts complained of, within sixty days. .
Continental I. & L. Society v. People, 167 Ill. 195.