The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1873-02-22
Building Societies.


ing article by our old correspondent on
Familiar Law:
1t may be well to state that too kinds of
Building Societies are now in operation,
the minutia of which are too well known
to occupy the time necessary for a recital
of their particular plans Of operations, and
the following remarks will be confined to
the one known as the old Building Society
of Elkton, or any one similar, or in other
words being in strict conformity with
article &c, sections so to 80 inclusive of the
Code of Maryland public general laws.
In the case of Robertson Us. The Ameri-
can Homestead Association, as given in
10th Maryland Reports, page 1877, in the
June term 1857, the Court of Appeals say:
In proceedings under this act, (Act of
1888, CHI. 1871, the court has no power to
pass any decree, not in conformity with
the conditions of the mortgage, and en-
braced in the terms of assent to the decree
contained in the mortgage itself.
The court is not authorised to determine
iudicially, by it's decree, the amount due on
the mortgage. and a decree for sale, sun
less certain sum is paid, " when, upon the
face of the mortgage, no such sum could be
due at the time of the decree, and there
was no covenant or engagement in the
mortgage to pay any such sum, is errone-
GUS.
The statement of his mortgage claim on
oath, required to be filed by the mortgage
before the sale, may be filed either before
or after the decree, but such statement is
not conclusive, and the amount actually
due is open to examination on proof, either
before the sale or after the order of ratifica-
ton nisi
Mortgages to Building associations, au-
thorsed and made valid by the act of 1852,
ch AS, are not within the provisions of the
act of 1925, CHI. so, or if they are, the act
of 1926 is repealed, pro tanto, by that of
1852, and the 9th section of this latter act,
by fair implication, brings such mortgages
within the provisions of the act of 1888, CHI.
1871, and its supplements.
In ascertaining the present value, in
gross, of the sums secured by such mort
gage, the court cannot look beyond the
naortgage itself. A covenant to pay call
fines imposed by tho articles Of associa-
tion,;' does not make such articles a part
of the mortgage, or authorize the court to
consider them in constituting the mortgage,
or in ascertaining the amount to which the
mortgage is entitled, in present., out of the
proceeds of sale.
In the case of such a mortgage, the mort
gagor is not entitled to redeem, on payment
of the money advanced to him by the as
ISOLATION with interest
The rule for ascertaining the amount
which the mortgage is entitled to receive,
in present., in satisfaction of such mort
gage, is to ascertain By procf the probable
duration of the society, then to estimate
the aggregate amount of the monthly in
stalments, payable during that time, and
from that sum rebate just amount for
interest, and add thereto the arrearages
due, after allowing for payments made to
the society.
Mortgages to building associations, such
as are contemplated and provided for by
the act of 1852, CHI. las, if executed in con-
formity to the provisions of that act. are
free from all objection on the ground of
uSury.
This case was one in which a mortgage
was given similar to those given in our old
Society; the party giving the mortgage
failing to pay up as agreed in the mort
gage, bill was filed to foreclose said
mortgage, upon which the above opinion
was given, and which settles the opinion
commonly held that the mortgagor is en-
titled to redeem on payment of the money
advanced to him by the society, with in
terest. This, the Court say, he cannot do:
but expressly say that the rule for ascer-
tanning the amount which the mortgage is
entitled to receive in satisfaction of such
mortgage, is to ascertain by proof the prob,
mate the aggregate amount of the monthly
instalments payable during that time, and
from that sum rebate just amount fol
interest, and add thereto the arrearages
due after allowing for payments made to
the society.
To illustrate the view of the Court
Suppose, on proof it should be determined
that. the Association will continue for -four
years longer; then the ascertainment would
be as follows:
Weekly dues for years, 2Os weeks,
Interest on $3.50 for years, 11O.4O
S31S. &C
From this rebate interest thereon
for one-half the time, years $3S. &c
$3.50. &C
To this add arrearages due after follow.
ing payments made. The sum in this
case supposed would be the amount which
the proceeds of sale.
1t will also be seen by this decision that
tie question of usury is also settled, the
Court saying that mortgages to Building
Associations under the act of 1852, ch. 14S,
&C., are free from all objections on the
ground of usury.
1t appears, the refore, that SO long as the
Society is managed and conducted in con-
formity with the provisions of the act OF
1862. as, | believe, the one in question has
so far, at least, is safe Investments
mutual contract between parties to do a
certain act; or in other words to continue
until each share of stock is worth 5000
each and every member being bound to
continue payment until each share shall be
worth 5000. That in default of payment,
as provided in the mortgages in question,
the property SO mortSaged shall be sold as
aforementioned, free from all object ions
on the ground of usury,-the only risk
being insecure investments, which l hope
has been avoided, so far as human fore.
sight and wisdom could do under the cir.
cumstances, by the able, prudent and bust
ness-like gentlemen who have managed
the Society for five years past.
]. E. WILSON.
A Suggestive Incident in the Arkansas
Valley.
On one of the bright days of January,
just passed, a party of Illinois stock men
Upr,, ri6inp IL, hu0o,y ba ri,