A statute which leaves part of the contract in force but modifies certain of its terms or changes its legal effect is invalid.1 Thus the legislature cannot restrict the assignability or negotiability of prior contracts,2 or require the same notice to be given to blank indorsers out of the chain of title as to regular indorsers, to fix liability,3 or dispense with certain acts, necessary when a contract was made to fix the liability of an in-dorser,4 or change the place of performance,5 nor change the time of performance, as by abolishing days of grace.6 A statute changing the rate of interest for pre-existing contracts impairs their obligation,7 whether such rate is expressly fixed by contract,8 or the contract specifically provides for interest but does not fix the rate, thereby impliedly adopting the legal rate,9 or even, by some authorities if the contract is simply for the payment of money, without any provision for interest.10 Thus the interest on state11 or county warrants12 cannot be changed by statute. If a state debt bears no interest when it is incurred the state cannot be compelled by subsequent statute to pay interest thereon.13 On the other hand, where a statute provided that warrants should bear interest from the date of presentation, the interest becomes a part of the obligation only after presentation; and a statute reducing the rate of interest is valid as to warrants issued before such statute was passed but not presented till after.14 So in New York a statute reducing the rate of interest from seven per cent to six, was held to apply to interest accruing after the passage of the act, but not to that accruing before, where the contract on which the money was due did not specifically provide for interest as a claim on book-account,15 or a claim for an unpaid dividend.16

13 Ogden v. Saunders, 12 Wheat. (U. S.) 213; Sturges v. Crownin-shield, 4 Wheat. (U. S.) 122; Smith v. Mead. 3 Conn. 253; 8 Am. Dec. 183; Union Bank v. Rugg, 78 Minn. 256; 80 N. W. 1121; Roosevelt v. Cebra, 17 Johns. (N. Y.) 108; Elton v. O'Connor, 6 N. D. 1; 33 L. R. A. 524; 68 N. W. 84; Conway v. Sea-mons, 55 Vt. 8; 45 Am. Rep. 579.

14 Willis v. Mabon. 48 Minn. 140; 31 Am. St. Rep. 626; 16 L. R. A. 281; 50 N. W. 1110.

15 Pioneer, etc., Co. v. Cannon. 06 Tenn. 599; 54 Am. St. Rep. 858;

33 L. R. A. 112; 36 S. W. 386; and see on the same point Root v. Sweeney, 12 S. D. 43; 80 N. W. 149.

1 McGahey v. Virginia, 135 U. S. 662; Carr v. State, 127 Ind. 204; 22 Am. St. Rep. 024; 11 L. R. A. 370; 26 X. E. 778; Louisville School Board v. Bank. 86 Ky. 150; 5 S. W. 739; Cook v. Googins, 126 Mass. 410; O'Brien v. Krenz, 36 Minn. 136; 30 N. W. 458; State v. Mc-Peak, 31 Neb. 139; 47 N. W. 691.

2 McGahey v. Virginia, 135 U. S. 662.

3 Cook v. Googins, 126 Mass. 410.

4 Farmers' Bank v. Gunnell, 26 Gratt. (Va.) 131.

5 Carr v. State, 127 Ind. 204; 22 Am. St. .Rep. 624; 11 L. R. A. 370; 26 N. E. 778.

6 Wood v. Rosendale, 18 Ohio C. C. 247.

7 Koshkonong v. Burton, 104 U. S. 668; First National Bank v. Arthur, 10 Colo. App. 283; 50 Pac. 738; Butler v. Rockwell, 17 Colo. 290; 17 L. R. A. 611; 29 Pac. 458; Seymour v. Ins. Co., 44 Conn. 300; 26 Am. Rep. 469; State v. Barrett, 25 Mont. 112; 63 Pac. 1030; Seton v. Hoyt, 34 Or. 266; 75 Am. St. Rep. 641; 43 L. R. A. 634; 55 Pac. 967; Scranton v. Gas Co., 102 Pa. St. 382; Union Savings Bank and Trust Co. v. Gelbach, 8 Wash. 497; 24 L. R. A. 359; 36 Pac. 467: Williams v. Shoudy, 12 Wash. 362; 41

Pac. 169; State v. Bowen, 11 Wash. 432; 39 Pac. 648; Murdock v. Ins. Co., 33 W. Va. 407; 7 L. R. A. 572; 10 S. E. 777.

8 Sims v. Squires, 80 Ind. 42; Kassing v. Ordvvay, 100 la. 611; 69 N. W. 1013; Richardson v. Campbell, 27 Neb. 644; 11 L. R. A. 189; 43 N. W. 405; Guild v. Bank, 4 S. D. 566; 57 N. W. 499.

9 Wyckoff v. Wyckoff, 44 N. J. Eq. 56; 13 Atl. 662.

10 Lee v. Davis, 1 A. K. Mar. (Ky.) 397; 10 Am. Dec. 746.

11 State v. Barrett, 25 Mont. 112; 63 Pac. 1030.

12 Seton v. Hoyt, 34 Or. 266; 75 Am. St. Rep. 641; 43 L. R. A. 634; 55 Pac. 967.

13 Molineux v. State, 109 Cal. 378; 50 Am. St. Rep. 49; 42 Pac. 34.

14 State v. Young, 22 Wash. 547; 61 Pac. 725.