SOME REMARKS ON THE SUBJECT OF Where there has been a stated account, the balance appearing due (if not barred) will, if acknowledged by the debtor, carry interest: (Barwell v. Parker, 2 Ves. 363.) The rate allowed by the Court of Chancery, when not otherwise agreed on, is 4 per cent.: (Attorney-General v. Alford, 24 L. T. Rep. 266.) By the stat. 1 & 2 Vict. c. 110, a judgment debt carries interest at 4 per cent. from the time of entering up the judgment. On a bond no interest can be recovered beyond the amount of the penalty: (Sharp v. Earl of Scarborough, 3 Ves. 557.) On a simple contract debt the 46th Chancery Order of August, 1841, gave interest at 4 per cent. from the date of the decree. By the stat. 3 & 4 Will. 4, c. 42, s. 28, the jury, on the trial of any issue, may, if they think fit, allow interest to the creditor, at a rate not exceeding the current rate, from the time when demand of payment has been made in writing, and notice given that interest would be charged. Payments on account are allowed to be taken first in discharge of interest due: (Bower v. Main, Cr. & Ph. 351; Booth v. Alington, 28 L. T. Rep. 211.) As a general rule, interest is not allowed by law upon money lent, except upon securities, or where there is an express engagement to that effect, or a promise implied by usage, or where the jury shall allow it under 3 & 4 Will. 4, c. 42. When an improper indorsement is made on a writ, claiming interest where none is legally payable, the proceedings will be set aside, and the attorney be made to pay the costs (Rodway v. Lucas, 24 L. T. Rep. 277.) When an account in Chancery was made out with rests, it was allowed to charge compound interest; although there was, however, a difference of practice amongst the Masters in that respect (Raphael v. Boehm, 11 Ves. 97.) The correct rule seems to be not to_compute interest upon interest (Whatton v. Cradock, 1 Keen, 26.) To convert interest into principal, the interest must first become due, and there must then be an agreement in writing, signed, to make it principal; but interest cannot be turned into principal to the prejudice of subsequent incumbrancers of which the mortgagee has notice: (2 Spence, 656.) A tenant for life is bound to keep down interest accruing during his own time: (Sparshaw v. Gibbs, 1 Kay, 333.) A tenant in tail in possession (if of full age) cannot be compelled by the remainderman or reversioner to pay interest on incumbrances, because the tenant in tail could make the estate his own, by barring the estate tail. If he do pay such interest, his personal representatives have no right to claim the sum so paid. If a tenant in tail be an infant, his guardian or trustee will be required to keep down the interest, because the infant cannot bar the remainder or reversion (Story, s. 488.) An overdrawn banking account will not carry interest, unless there be an agreement to that effect, vouched by documentary evidence. The Usury Laws were repealed by 17 & 18 Vict. c. 90. |