Veix v. Sixth Ward Bldg. & Loan Ass'n
Supreme Court of the United States
March 6, 1940, Argued ; April 22, 1940, Decided
[*34] [**793] [***1063] MR. JUSTICE REED delivered the opinion of the Court.
In 1928 and 1929 appellant purchased [****5] prepaid shares of the appellee, [***1064] a New Jersey building and loan association, paying the par value of $ 200 per share. At that [*35] time the applicable New Jersey statutes provided that shares in such an association could be withdrawn by giving such written notice as the constitution or by-laws of the association provided, not to exceed 30 days; that withdrawals should be paid in the order in which notices were received, with not more than one-half of the receipts of any month being required to be used for payment of withdrawals, without the consent of the board of directors, until the oldest unpaid claim of withdrawal had been on file for six months; that no payment should be postponed for longer than six months from the date of notice; and that any member who had given notice could sue and recover the withdrawal value if it was not paid within six months of the notice.
On April 22, 1932, these statutes were amended in four respects: (1) "total receipts" of an association, [****6] one-half of which were required to be used for the payment of withdrawals and which had not been previously defined, were defined as income on authorized investments, dues on shares of the association which were pledged with it to secure loans, and repayments from loans; (2) if in any one month the funds required to be payable for withdrawals were insufficient to pay all requested withdrawals, withdrawing members were to receive $ 500 each in the order of priority until the fund for withdrawals was exhausted; (3) no withdrawals were to be paid if the funds available for payment of matured shares were insufficient to pay all matured shares, the payment of which had been requested within thirty days after maturity; (4) so long as the funds of an association were applied as required by the amendment, no member who had filed his withdrawal notice should have a right to sue for the withdrawal value of his shares.
[*36] In 1935 another amendment was passed providing that one-third of [****7] the "net receipts" of an association were to be payable for withdrawals, with "net receipts" defined as monies, other than borrowed monies, received by the association less operating expenses, payments on creditor obligations, payments for protecting the property of the association and reserves for any of these purposes. At the same time payment of withdrawals in the order in which notices had been received was continued but the payments were limited to $ 50 per member.Read The Full CaseNot a Lexis Advance subscriber? Try it out for free.
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310 U.S. 32 *; 60 S. Ct. 792 **; 84 L. Ed. 1061 ***; 1940 U.S. LEXIS 1064 ****
VEIX v. SIXTH WARD BUILDING & LOAN ASSOCIATION OF NEWARK
Prior History: APPEAL FROM THE SUPREME COURT OF NEW JERSEY.
APPEAL from the affirmance of a judgment dismissing the complaint in the suit brought by Veix against the Building & Loan Association to recover the amount of his paid up shares with interest.
Disposition: 123 N. J. L. 356; 8 A. 2d 350, affirmed.
withdrawal, notice, shares, emergency, building and loan association, contracts
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