Interest on a mortgage though payable at fixed times is deemed to accrue from day to day (u), and as between persons entitled in succession to the interest it will be apportioned

(v).

Where interest is payable periodically it is chargeable on the whole outstanding principal unless otherwise expressly provided, and where a mortgage contained a covenant to pay the principal sum in eight equal annual instalments, "with interest on the principal sum remaining due at each payment," it was held that the interest must be paid with each instalment on the whole principal money unpaid, and not on the instalment only (w).

(p) Brown v. Barkham, 1720, 1 P. Wms. 652; Law v. Glenn, 1867, L.R. 2 Ch. 634; Standard Trusts Co. v. Hurst, 1914, 24 M.R. 185, 16 D.L.R. 473.

(q) Grahame v. Anderson, 1868, 15 Gr. 189.

(r) Brown v. Deacon, 1866, 12 Gr. 198.

(s) Totten v. Watson, 1870, 17 Gr. 233.

(t) Re Houston, Houston v. Houston, 1882, 2 u.R. 84; Matson v. Swift, 1841, 5 Jur. 645.

(u) In re Rogers' Trusts, 1860, 1 Dr. & S. 338.

(v) Edwards v. Countess of Warwick, 1723, 2 P. Wms. 171.

A mortgagee is entitled to charge interest upon all sums which by agreement express or implied he is authorized to add to his security, such as moneys paid upon prior encumbrances or for improvements, insurance premiums or taxes (x).

Interest begins to run only from the time the money is actually advanced and not necessarily from the date of the mortgage (y).

Where the interest is payable in advance the mortgagee is nevertheless not entitled to have interest allowed for a period subsequent to that appointed for redemption. Thus interest on a mortgage was payable half-yearly in advance on the 1st of April and October; the mortgagee filed a bill for sale, and the registrar on taking the account (in the latter part of January) fixed a day in July following for payment, and allowed the plaintiff interest to that date, but refused to allow him the half year's interest payable in advance on the 1st of April (z). Where an action is brought to foreclose a mortgage payable by instalments, and the defendant moves to stay the action, on payment of the instalment and interest then due, the interest upon the mortgage money is to be computed only to the last preceding gale day and not to the time of the making of the application (a).

(w) Hall v. Brown, 1858, 15 U.C.R. 41?.

(x) Quarrell v. Beckford, 1816, 1 Madd. 269; McMaster v. Hector, 1872, 8 C.L.J. 284.

(y) Edmonds v. Hamilton Provident and Loan Soc, 1890, 19 O.R. 677; 18 O.A.R. 347.

(z) Trust and Loan Co. v. Kirk, 1880, 8 O.P.R. 203.

(a) Strachan v. Murney, 1858, 6 Gr. 378; see chapter 24, Action for Foreclosure or Sale, Sec. 242.

Where purchase money out of which mortgage moneys are payable is directed to be paid into court on a certain day, but is not actually paid in till long after, the mortgagee is entitled to interest at the rate reserved in his mortgage until he receives notice of payment into court (b). Where the mortgagee, because he has mislaid the mortgage deed, or for some other reason, is unable to give a discharge at the time when the mortgage moneys are paid or tendered he will not be allowed subsequent interest (c).

A mortgagee is not ordinarily obliged to accept payment "by driblets" (d), but if payments are in fact made from time to time on account of the mortgage, the question arises as to the manner in which the payments should be applied. If a debtor who makes payments from time to time to a 'creditor does not stipulate for a particular mode of application, the creditor may appropriate the payments in the first place to the keeping down of the interest. The proper mode is to calculate the interest upon the debt to the time of each payment, then to apply the amount paid in discharge of that interest in the first place, and the surplus, if any, in discharge of so much of the principal in the second place, and to proceed in like manner through the account, calculating the interest on the unpaid balance of principal in respect of the period between two payments. The mode sometimes adopted, namely, to calculate interest upon the whole debt for the whole period, as if no payments had been made, on the one side, and to calculate interest on the amount of each payment from the time it was made, on the other side, and then to deduct the total of the payments and interest from the whole debt and interest, is unjust to the creditor, because the effect is to allow interest to the debtor upon payments made on account of interest although no corresponding allowance of interest upon interest is made to the creditor (e).

(b) McDermid v. McDermid, 1870, 7 O.P.R. 457.

(c) Lord Middleton v. Eliot, 1847, 15 Sim. 531; James v. Rum-sey, 1879, 11 Ch.D. 398.

(d) But in some circumstances a mortgagee who takes possession may be obliged, in effect, to accept payment in this way, by applying rents and profits received upon the mortgage debt. See chapter 28, Mortgagee in Possession, Sec. 308.