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U.S. Supreme Court

Veix v. Sixth Ward Building & Loan Assn., 310 U.S. 32 (1940)

Veix v. Sixth Ward Building & Loan Association of Newark

No. 567

Argued March 6, 1940

Decided April 22, 1940

310 U.S. 32


1. On appeal under Jud.Code § 237(a) from a judgment of a state court sustaining the constitutionality of a state statute, this Court does not consider the application of later amendatory statutes which were not considered by the state court in its opinion. P. 310 U. S. 36.

2. For the sake of safeguarding the solvency of building and loan associations in the public interest, a state legislature may, independently of emergency and consistently with the contract clause of the Constitution, restrict the rights of certificate holders, existing under statutory regulations in force when they acquired their certificates, to withdraw or recover by suit the amounts of their certificates. P. 310 U. S. 38.

3. When the plaintiff purchased his certificates, the statutes of New Jersey permitted him to withdraw upon written notice and provided that withdrawals should be paid in the order in which notices were received at least one-half of the receipts in any

Page 310 U. S. 33

month being assigned to this purpose; if not paid in six months, the shareholder could recover withdrawal value by suit. The amendatory Act, here sustained, defined the receipts from one-half of which withdrawals were to be satisfied, provided that if, in any month, the funds payable for withdrawals were insufficient to pay all withdrawing members, they were to receive $500 each in the order of priority until the fund for withdrawals was exhausted; withdrawal payments were subordinated to payment of matured shares, and, so long as the funds of an association were applied as required by the amendment, no member could sue for the withdrawal value of his shares. Pp. 310 U. S. 34-36.

123 N.J.L. 356, 8 A.2d 350, affirmed.

Appeal from the affirmance of a judgment dismissing the complaint in the suit brought by Veix against the Building & Loan Association to recover the amount of his paid up shares, with interest.

Page 310 U. S. 34

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