People v. New York Building Loan Banking Co.

With the insolvency of the defendant company its claim against borrowing members for premiums charged in carrying through the building transactions became no longer an asset, since the consideration for the member’s promise to pay the premium — the continued benefit from the existence of the company — failed with the cessation of business, and in the adjustment of the member’s account the premium is not to be added to the actual indebtedness due from the member to the company, the measure being simply the amount loaned, with interest, subject to deduction in the amount of the payments made by…