Mortgage Trust Co. v. Bach

Citations

• 69 Kan. 749
• 77 P. 545
• 1904 Kan. LEXIS 329

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Promissory Note—Maturity upon Default in Payment of Interest—Effect of Declaration of Option in Petition. A note secured by mortgage bore interest at the rate of six and one-half per cent, per annum and provided that the failure to pay any interest coupon should mature the entire debt, at the option of the holder, and it was stipulated that the note should draw interest after maturity at the rate of ten per cent, per annum. There was. default in the payment of interest, but the holder did not then elect to declare the whole debt due, nor until about a year afterward, when a foreclosure action was brought. In the petition the holder averred that it then elected to declare the entire debt due as of the time when default was made. Held, that the holder could not, by a mere averment, give its declaration of election a retrospective effect, thus making the entire debt to become due and to draw interest at the increased rate about a year before the option was in fact exercised.</p>