Artisti-kote Co. v. Benefactor Building & Loan Ass'n

WOOLLEY, Circuit Judge.

In July, 1927, Robert H. Scroggins, a citizen of Pennsylvania, executed and delivered to the Benefactor Building and Loan Association, a corporation of Pennsylvania, his bond for $110,000, and also his mortgage for the same amount, secured upon an apartment house situated in Pennsylvania, subject to a prior mortgage for $225,000. Simultaneously with the delivery of the bond and mortgage Scroggins subscribed for and assigned to the loan association 550 shares of its stock as additional collateral security, pursuant to the familiar theory on which building and loan…