Appeal, No. 215, Oct. T., 1955, from judgment of Court of Common Pleas of Northumberland County, Sept. T., 1954, No. 624, in case of Harry M. Montague v. The Farmers National Bank of Watsontown, Pa. Judgment reversed.
Charles Wolfe Kalp, with him Sidney Apfelbaum and John F. Zeller, III, for appellant.
Calvin J. Friedberg, with him Samuel Gubin and M. Luther Harter, Jr., for appellee.
Before Rhodes, P.j., Hirt, Ross, Gunther, Wright, Woodside, and Ervin, JJ.
[ 180 Pa. Super. Page 612]
This is an appeal from an order of the Court of Common Pleas of Northumberland County sustaining defendants' preliminary objections in the nature of a demurrer to a complaint in assumpsit brought by the plaintiff against The Farmers National Bank of Watsontown, Pa., in its individual capacity and as trustee for bondholders under the mortgage of the Montgomery-Clinton School Association.
By filing the preliminary objections the defendants admit for the purpose of the matter now before us every well-pleaded, material, relevant fact contained in the complaint and every inference fairly deducible from the facts pleaded. Byers v. Ward, 368 Pa. 416, 84 A.2d 307 (1951).
The facts set forth in the complaint are substantially as follows:
On February 14, 1929 the Montgomery-Clinton School Association, a Pennsylvania corporation adopted a resolution providing, inter alia, as follows:
[ 180 Pa. Super. Page 613]
"RESOLVED, that, for the purpose of supporting education in Montgomery Borough and Clinton Township, County of Lycoming and State of Pennsylvania by providing a school building for the use of the School Districts of said Borough and Township (without profit to said corporation) ... the mortgage indebtedness of said association shall be increased from nothing to two hundred thousand ($200,000.00) dollars for which coupon bonds of the Association, in denominations of $1,000.00, $500.00, $100.00 and $50.00 aggregating in all two hundred thousand ($200,000.00) dollars shall be issued as follows: 135 bonds of $1000.00 denomination numbered consecutively from M-1 to M-135 inclusive. 90 bonds of $500.00 denomination ... 165 bonds of $100.00 denomination ... 70 bonds of $50.00 denomination ... said bonds to be dated the first day of January 1929, and payable in lawful money of the United States, on the first day of January 1969 with interest also payable in lawful money at the rate of five and one-half per centum per annum, semi-annually on the first days of January and July of each year ..."
In compliance with the above resolution there was duly executed and recorded a mortgage of the Association for $200,000 dated April 10, 1929 ...