Equitable Savings & Loan Ass'n v. Bowes

Citations

• 70 Wash. 169
• 126 P. 436
• 1912 Wash. LEXIS 1023

Syllabus

<p>Bills and Notes — Validity—Effect—Construction—Rate of Interest — Payment. A mortgage note promising to pay $2,025.60 in 120 equal monthly installments of $16.88 each, on account of the principal sum of a loan of $1,200 and $825.60 interest thereon, the same being total interest for 120 months “calculated upon unpaid monthly balances” is, in the absence of fraud, a valid note as against a maker capable of understanding its terms and making a correct computation; and such note calls for interest at the rate of 11.52 per cent per annum, and each monthly payment decreased the principal until, after 48 payments, the decreased principal amounted to $874.84.</p> <p>Mortgages — Stipulations—Increased Interest After Default-Construction. A stipulation in a mortgage providing for interest at the rate of 12 per cent upon all remaining unpaid installments, if default be made in the payment of any installment of principal and interest upon the day it becomes due, provides for interest at such increased rate from the date of the default, and not from the date of the note.</p>