Burk v. Cooperative Finance Corp.

In 1953, Cooperative Finance Corporation (defendant-appellant, hereinafter referred to as CFC) was organized, pursuant to RCW 23.86 as a cooperative corporation engaged in the finance business. Subsequently, on July 11, 1955, Frank Burk (plaintiff-respondent) purchased 45 shares of CFC preferred stock 1 from the cooperative for $4,500. These shares of preferred stock contained a statement that they were callable by the cooperative at their par value plus accumulated dividends. In the fall of 1957, Mr. Burk was interested in increasing the income from his investment and discussed the matter…