Hawkins v. First Federal Savings and Loan Ass'n

FAULKNER, Justice.

Frank Hawkins decided to build a Holiday Inn on property bounded by Church, Monroe, Jackson, and Joachim Streets in a downtown urban renewal area of Mobile. He contracted with First Federal Savings and Loan Association for a loan of $500,-000, subject to several conditions, including the following:

“That an amount equal to 5% of the loan be deposited with the Association as a stand by [sic] fee for 12 months * * *. If such loan is not closed 12 months from date of acceptance, the entire fee will be forfeited.”

In accordance with this provision, Hawkins paid $25,000 to First…