Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1908-02-01
FOREIGN LOAN COMPANIES
important Opinion Rendered byl
Judge Miller
MUST CONFORM TO OUR LAWS
II They Are Allowed to DO Business
IN This -usurious, and the
usarx Net colleetable.

usary Net colleetable.
at the session 81 the supreme con i
Of West yirg mia On Wednesday Judge
Miller wrote the opinion Of tho only
case from Kanawha county. The case
has been in the courts for some time
and the opinion Of the supreme
judges viii be read with more than
ordinary Interest by the attorneys.
The style Of the case is Irving VS..
Iron Belt Building and Loan essoeia-
ton and the supreme court las affirm
ed the decision Of the lower court
The question the court was calico
upon to decide was for a construction
loan assocations with citizen Of
the state Of West Virginia. The de-
PENDANT was a company chartered IN
der the laws Of Virginia, with princi-
pal Offices at Roanoke with the power
to do business at any point in the
United states.
The syllabus written BY Judge Mil
Ter and coneurred III by the other
members Of the court is OF much in
terest and reads as fellows:
i. Premium or profit for the nse Of
an advance or loan By building and
loan association to a member thereof
must, under the laws Of this state. be
fixed BY competitive bidding for pri-
ority OF right to the mutual funds, or,
in default OF bidders at or aSove a
minimum premium fixed in the BY
laws, by awarding the money to a
member at such minimum premium.
2. When such premium is fixed by
any other method than that prescrib-
ed by our statute and is greater than
the legal rate OF interest, the con-
tract respecting the advance is usur-
ious. and, 70 the extent Of such usury.
cannot be enforced in the courts Of
this state
3. A building and loan association
contract requiring payment Of fixed
monthly premium for an indefinite
period OF time is usurions.
A. The bylaws Of a foreign build
ing and loan association doing busl-
ness in this state, containing no pro-
vision for competitive bidding or for
minimum premium in default OF
bidders. but providing that a borrow
ing stockholder in,-adiition 30 six per
cent interest on the money actually
loaned shall pay a fixed premium of
$50 share. or at the time of the adj
vance may obtain from the associa-
ton and use therefor special advance
stock equal TO one-half the number
of shares necessary to carry the ad-
vance which special stock shall ma
ture at the same time as his regular
stock but not subject to membership
fees or expenses, and which on re-
payment tof the loan shall be forfeit
ed to the association, the borrower
then receiving only his original stock.
Held. That a contract fer an advance
of $500 or fifteen shares of regular
and fifteen shares Of special advance
stock in lieu Of such fixed premium,
with a stakeholder in this state, the
bond and deed Of trust providing for
monthly payments Of $24 each, of
which 50 is for dues on regular stock,
$3.50 for dues on special advance
stock and $3.50 for interest. to be
continued until such time as such
stock shall be matured, IS usurious.
and enforcible only as simpe loan
of money at legal interest.
s. A foreign building and 'oan as
sociation. coming into this state to
transact business. must conform to
our law regulating similar corpora
tions organized under the law Of this
state: and its contract, although in
terms solvab.e at its domicile n the
foreign state, must be such as sim
liar domestic corporation is authoriz-
ed to make. in order to be enforced IN
this state.-Char. eston Gazette.
Tbrot.rk 49, -r.t.l.o