Evening journal., 1919-06-07
No PRIORITIES
FOR LOAN funds

Chancellor Curtis has handed down
m opinion in the case OF the National
.snldins Loan and provident Associs-
Jon, ruling that there are no equitable
prioritles between the judgment cred
tors and holders of full paid stock OF
ne association. and that the two classes
together share pro rata in the associa-
lions fund. The receiver IS directed
% submit a dlstribuive statement, and
thereafter a decree will be entered.
In The hands OF the receiver Of The
association. William :. prickett there
Is $3.50 whIo the claims OF the two
rlasses Of creditors amounts TO about
$500
William : Prickett was appointed
receiver OF the association In June,
1916. and the assets at that time con
sisted Of lot OF mortgages. most OF
which were second or third liens on
zeal estate. and also equities in certain
improved real estate.
Prior 10 The Appointment OF the re-
ceiver. certain persons who had been
stockholders. but who had given no
tice Of withdrawal, were granted
Withdrawal certificates. payable six
months after date. on the failure Of
The association 10 pay these certificates
when due. three OF the holders, William
Baxter. Charles II. Dick and Mary j..
Reynolds, recovered judgments In the
Superior Court, which were liens on
the real estate at The time Of the re-
ceivership.
The question before the chsncellor
was as 10 the pri0rties Of the diff
fercnl classes Of claims.
After discussing the theory on which
building loan associations are conduct
ed as 10 the right Of a member to With
draw. the chancellor holds that the
Judgment creditors have had determined
In their favor their legal right TO pay
mcnt prior 20 The appointment Of the
receiver, and That in the winding up OF
the association through The receiver
the court recognizes their established
rights.
Robert r. Richards. Aaron Finger.
Charles ". smith and Ayres j. stock
ley were solicitors for the Judgment
creditors: Charles b. Evans and Caleb
r. Burchenal for the holders OF with
drawa certificates; and H. H. Ward and
Thomas Davis FOR the holders Of. frll
paid stock.
In addition 10 these judgments. there
were four other classes Of claims
against the assets Of the association
Those holding Withdrawal certificates.
fun paid certificates. fun paid stock and
instalment stock
Tho Receiver. William s Prickett. IN
his final report, recommended that the
judgment creditors be given an Of The
proceeds arising from the sale Of real
estate. A notice Of the filing Of This
report was given 10 an who had nled
claims. and. no exceptions having been
taken. an order was made on October
.. 1918 approving The account OF the
receiver directing the payment OF The
expenses and application Of proceeds
of the sale of real estate 10 the iudg
mcnt creditors. In this way the Baxter
judgment was paid In full and the
nick Judgment partly paid. there being
less than s300 due The latter.
This lefi the hands Of the re-
ceiver SJ.s65 iih proved claims aggre-
eating $1,000
The Chancellor directed the receiver
40 report whether. al The time of the
issuance Of the withdrawal or fun paid
certificates. the association was in
solvent. and as 10 other questions to
latins 10 the insolvency Of The ssso-
citation. The receiver submitted a full
report. which he concluded and The
Chancellor approved
There never was fine from the
date Of its organization 10 the date Of
the annofufmonf ~ fhn receiver that
this association could have met upon
stockholders the Chancellor says