1893 - State Library Information Center

APPENDIX II.Decisions of New Jersey Courts.GROSS DEDUCTIVE PREMIUM PLAN LEGAL—REASONABLE FINES—WHEN COLLECTIBLE BY FORECLOSURE OE MORTGAGE DEBT—WHEN INTEREST BEGINS TO RUN ON MORTGAGE.Lincoln Building and Loan Association v. Bowen.The bill in this case was filed to foreclose a mortgage, on landsin Jersey City, securing a bond. The complainant is a corporationorganized under a an act to encourage the establishment ofmutual loan, homestead and building associations," approvedApril 9th, 1875 (Bevision, p. 92). The defendant, Bowen, is theassignee of Clark and Demarest, the obligors in the bond, underthe Insolvent Debtors' act.The case shows that Clark and Demarest were members of theassociation, holding forty shares of stock therein, and that onAugust 4th, 1891, they agreed to borrow of the association $8,000,and to pay for obtaining such loan in advance of other membersa premium of $1,000. In pursuance of such agreement, the associationpaid to Clark and Demarest $7,000 in cash, and they gaveto the association the bond and assignment of stock and the mortgagein question. Subsequently they failed to pay the dues andinterest required by the condition of the bond, and after they hadbeen in default for six months this suit was brought for the recoveryof the balance of the $8,000 and interest, and of finesimposed by the association under its constitution and by-lawsfor non-payment of dues and interest.. (441)