Texas Plains Building & Loan Ass'n v. Colonial Corp.

STOKES, Justice.

The appellant, Texas Plains Building & Loan Association, was organized under the laws of Texas as a building and loan association in the year 1-926. In 1930 it sold to appellee, Colonial Corporation, its “permanent” capital stock of the par value of $66,000 and from time to time issued other classes of its capital stock to investors and borrowers as provided by its charter and the law under which it operated. During the year 1929 the Association encountered financial difficulties which continued to grow worse and in 1934 it had a large number of borrowers who were unable to…