Opinion
May 9, 1940.
June 24, 1940.
Building and loan associations — Officers — Authority — Execution of bond — Acts of May 12, 1925, P. L. 615, and May 5, 1933, P. L. 457.
Under the Act of May 12, 1925, P. L. 615, as reënacted in section 314 of the Building and Loan Code of May 5, 1933, P. L. 457, in a suit against a building and loan association on a bond executed on its behalf by its officers, their lack of authority so to act is no defense.
Argued May 9, 1940.
Before SCHAFFER, C. J., DREW, LINN, STERN, BARNES and PATTERSON, JJ.
Appeal, No. 130, Jan. T., 1940, from judgment of C. P. No. 7, Phila. Co., March T., 1938, No. 3624 (tried in C. P. No. 2), in case of Integrity Trust Company, to use of Integrity Trust Company et al., executors, v. Nestor Building and Loan Association. Judgment affirmed.
Assumpsit. Before LEWIS, J.
Verdict directed for plaintiff and judgment entered thereon. Defendant appealed.
Errors assigned, among others, related to the refusal of defendant's points for charge and affirmance of plaintiff's point for charge.
David Bortin, for appellant.
Morris Wolf, of Wolf, Block, Schorr Solis-Cohen, for appellee.
This appeal is from judgment on a verdict directed for plaintiff in a suit to recover on a bond given in 1928 by defendant Building Loan Association as collateral for the payment of a mortgage on property acquired by the association in 1927 subject to the mortgage. The principal defense was that defendant had been unable to find that its officers had been authorized to execute the bond; it was agreed that minutes for the proper period were missing. The applicable legislation, the Act of May 12, 1925, P. L. 615, 15 PS Sec. 61 reënacted in section 314 of the Building and Loan Code, 1933, P. L. 457, 475, 15 PS Sec. 1074-314, was involved in Bennett v. Rittenhouse Building Loan Association, 313 Pa. 391, 169 A. 757. It is controlling.
Judgment affirmed.