This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
A corporation has usually an implied power to lend money where this is an appropriate means of carrying on its business.1
20 Rhorer v. Middlesboro, etc., Co., 103 Ky. 146; 44 S. W. 448.
21Marbury v. Land Co., 62 Fed. 335; 10 C. C. A. 393; Ellerman v. Chicago, etc., Co., 49 N. J. Eq. 217; 23 Atl. 287. See also Broadway National Bank v. Baker, 176 Mass. 294; 57 N. E. 603.
22 Low v. R. R. Co., 52 Cal. 53; 28 Am. Rep. 629.
23 Gilbert v. Mfg. Co., 98 Fed. 208.
24 Singer Piano Co. v. Barnard, etc., 113 Ia. 664; 83 N. W. 725 (the debts being for unpaid subscriptions for stock).
25 Wheeler v. Bank, 188 111 34; 80 Am. St. Rep. 161; 58 N. E. 598; Wilson v. Ry. Co., 120 N. Y. 145; 17 Am. St. Rep., 625; 24 N. E. 384.
26 Farrington v. R. R. Co., 150 Mass. 406; 15 Am. St. Rep. 222; 5 L. R. A. 849; 23 N. E. 109.
27 Sutton v. Dudley, 193 Pa. St. 194; 44 Atl. 438.
28 Kentucky, etc., Association v. Lawrence, 106 Ky. 88; 49 S. W. 1059.
29 Zabriskie v. R. R. Co., 23 How. (U. S.) 381.
1 Brown v. Elwell, 17 Wash. 442; 49 Pac. 1068.
It may loan undivided profits.2 So a mutual benefit society may take a note for money lent.3 A statute restricting the manner of lending on the security of chattels "or otherwise," does not apply to real estate mortgages.4 A statute forbidding any corporation except a building and loan association to lend money to a stockholder prevents an insurance company from advancing money to its stockholders.5
 
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