Yndart v. Den

Citations

• 116 Cal. 533
• 48 P. 618
• 1897 Cal. LEXIS 585

Syllabus

<p>Compound Interest—Construction of Code—Limitation of Rate— Notes and Mortgages.—Under section 1919 of the Civil Code, it is not competent for the parties to any contract in writing, whereby any debt is secured to be paid, to contract that interest upon interest shall be fixed beyond the rate to be borne by the principal; and deferred installments of interest upon notes and mortgages, securing the same, cannot be made to bear a greater rate of interest than the principal debt.</p> <p>Id.—Illegal Contract—Exclusion of Compound Interest.—A contract embodied in notes and mortgages securing the same, that deferred installments of- interest shall bear interest at a higher rate than that borne by the principal, is wholly illegal and void; and, in such case, no lawful contract for compound interest can be implied, and no compound interest can be allowed upon the foreclosure of the mortgage.</p>