Bonds such as have been discussed, by their terms make the principal payable in its entirety at a specified time. It may be agreed that the principal shall be payable in instalment at designated intervals. The following is a satisfactory form of clause for this purpose.

In instalments as follows: $ on the day of 192 , and a like sum quarterly thereafter on the days of , and in each year until the full amount of principal is paid, together with interest thereon from the date hereof at the rate of six per centum per annum, payable quarterly, with each instalment of principal.

Simple changes in the wording will permit of the use of this form for monthly instalments or semi-annual instalments. It is usual for facility in bookkeeping to provide for interest payments at the same time that each instalment of principal becomes due, but this is not necessary. Interest may be made payable at any intervals stipulated. If the borrower desires the option of paying more than the fixed instalment on any due date, this may be provided for by inserting the words "or more" following the amount of the agreed instalment. The lender however does not wish to receive some odd amount of payment, although he is willing to permit the borrower to increase his payment. He therefore should have it provided that the extra payment be a certain amount or a multiple thereof, as $500 or $1,000, $1,500, $2,000, etc. The borrower on his part may have agreed to pay instalments of $500 or more in the amount of $250 or a multiple thereof. Suppose he pays $1,000 on a certain due date; if no other provision be inserted in the bond he is bound to pay the usual instalment on the next due date. He may not be able to do so and so become in default, although he had really paid the instalment in advance. He may guard against this situation by having it stipulated in the bond that extra payments are made "in anticipation." The clause should then read substantially "..............dollars or more, in the amount of....................dollars or a multiple thereof, in anticipation, on the......day of" etc.