In re Howard

Citations

• 207 F. 402
• 1913 U.S. Dist. LEXIS 1317

Syllabus

<p>1. Interest (§ 43*)—Stipulations—Construction.</p> <p>Tke condition of a bond secured by a mortgage provided for the payment of $1,200 without mentioning interest, of which $15 was to be due on the first day of each month, and further provided that such payment of $15 was to be for interest and principal; that at the end of each year the mortgagor was to be credited for the sums actually paid, interest and principal; that should any default be made in the payment of interest, etc., the principal sum should become due. The mortgage provided that for better securing the payment of the sum mentioned in th'e condition of the bond, “with interest thereon,” the premises described were thereby granted, and further provided that, if the mortgagor should pay the sum mentioned in the condition of the bond “and the interest thereon,” the mortgage and the estate granted should cease, determine, and be void. Held, that the whole principal sum bore interest from the date of the instruments which the obligors promised to pay from month to month, with the monthly payments of principal; the bond and mortgage not being open to the construction contended for that interest was to be allowed on each installment for one month only, and to.be deducted from the $15 before applying the balance on the principal, since interest was plainly and repeatedly provided for and was in no way limited to interest on the installments, especially where, at the time of an assignment of the bond and mortgage, the mortgagor indorsed on the bond a stipulation as to the amount due, showing that he .construed the bond as providing for interest on the whole principal sum.</p> <p>[Ed. Note.—For other cases, see Interest, Cent. Dig. § 92; Dec. Dig. § 43.*]</p> <p>2. Interest (§ 1*)—Grounds for Allowance.</p> <p>Interest can be allowed only by virtue of some contract, express or implied, or by virtue of some statute, or on account of the default of the party liable to pay, when it is allowed as damages for the