Sec. 311. When interest is payable, p. 599.

Sec. 312. Rate of interest until maturity, p. 600.

Sec. 313. Rate of interest after maturity, p. 602.

Sec. 314. Increased rate after default, p. 606.

Sec. 315. Calculation and apportionment of interest, p. 608.

Sec. 316. Compound interest, p. 611.

Sec. 317. Interest in lieu of notice, p. 612.

Sec. 318. Legislative jurisdiction as to interest and mortgages, p. 613.

Sec. 311. When interest is payable

A mortgage usually provides for the payment of interest periodically on the principal, and the calculation of the interest payable is one of the items in the taking of the mortgage accounts (a). Sometimes, however, especially in the case of an equitable mortgage by deposit of title deeds, no express provision is made for payment of interest. In that event, in the absence of evidence of a contrary intention (6), there is an implied contract to pay interest from the time of the making of the advance secured by the mortgage (c). It frequently happens that there is no express provision for payment of interest after default. In that event interest will nevertheless be payable on the overdue principal (d) even though the mortgage provides that no interest shall be payable until maturity or is expressed to be payable "without interest" (e). Interest after default is allowed by way of damages for the non-payment of the principal (f).

(a) See chapter 27, Accounting between Mortgagor and Mortgagee, Sec. 293.

(b) E.g., if the instrument expressly provides for reconveyance or defeasance on repayment of the principal. Thompson v. Drew, 1855, 20 Beav. 49.

(c) In re Kerr's Policy, 1869, L.R. 8 Eq. 331; cf. In re Drax, Savile v. Drax, [1903] 1 Ch. 781, and cases cited in argument; 21 Halsbury, Laws of England, pp. 114, 115; but note that many of

Even though an action on the covenant for payment or an action for foreclosure or sale is not barred by lapse of time, the right to recover arrears of interest out of the land is limited to six years (g).