Century Federal Savings & Loan Ass'n v. Sullivan

In an action to foreclose several mortgages, the appellant’s answer sets forth defenses to the effect that the parties entered into a joint venture for the improvement of vacant land, and that the mortgages were not intended to create any indebtedness between the parties. Respondent is a banking institution. On respondent’s motion, under rule 109 of the Rules of Civil Practice, the defenses were struck as insufficient on grounds that the agreement is ultra vires the respondent institution and void as contrary to public policy. Order modified on the law by adding a provision that the defendant…