Majority
p. 259James Reynolds, Resp’t, v. New York Building Loan Banking Company, App’lt. (Supreme Court, General Term, Second Department, Filed July 26, 1895.)
Headnote
Building and loan associations—Stock—Withdrawal—Waiver.Where the secretary of a building and loan association receives a notice of withdrawal of stock without objection and does not inform the person who gives the notice that the transfer of the stock to him must he entered on the corporation books, the condition is waived and cannot afterwards be insisted upon.
Appeal from a judgment entered on a verdict in favor of plaintiff, and from an order denying a motion to set aside the verdict and for a new trial, made on the judge’s minutes.
Booraem, Hamilton, Beckett & Ransom for app’lt; Isaac N. Mills for resp’t.
There in no dispute that the secretary was the proper person to receive notices of withdrawal of funds. The power to receive notices implied the power to reject them, if irregular, and the duty to inform the applicant of the action taken. Any other rule would give a corporation a license to commit fraud. Had the secretary, when the notice was given, announced to plaintiff that the transfer of shares to him must be entered on the corporation books, that would have been promptly done. That obligation was for the benefit of the company. Once waived, it cannot now be insisted upon.
Judgment affirmed, with costs.