INTEREST.
On Debts. The compensation which is paid by the borrower of money to the lender for its use, and, generally, by a debtor to his creditor in recompense for his detention of the debt.
2. Who is bound to pay interest. The con tractor who has expressly or impliedly under taken to pay interest is, of course, bound to do so.
Executors, 12 Conn. 350; 7 Serg. & R. Penn. 264, administrators, 4 Gill & J. Md. 453; 35 Miss. 321, assignees of bankrupts or insolvents, 2 Watts & S. Penn. 557, guardians, 29 Ga. 82; 14 La. Ann. 764, and trustees, 1 Pick. Mass. 528 ; 10 Gill & J. Md. 175 ; 15 Md. 75 ; 29 Ga. 82; 11 Cal. 71, who have kept money an un reasonable length of time, 18 Pick. Mass. 1; 1 Ashm. Penn. 305 ; 29 Ga. 82, and have made or might have made it productive, 4 Gill &J. Md. 453 ; 1 Pick. Mass. 530, are chargeable with interest.
Tenants for life must pay interest on incumbranees on the estate. 4 Yes. Ch. 33 ; 1 Vern. Ch. 404, n.; 1 Washburn, Real Prop. 96, 257, 573; Story, Eq. Jur. 487 ; 5 Johns. Ch. N. Y. 482. In Pennsylvania, the heir at law is not bound to pay interest on a mort gage given by his ancestor.
In Massachusetts, a bank is liable, inde pendently of the statute of 1809, c. 37, to pay interest on their bills if not paid when presented for payment. 8 Mass. 445.
Revenue officers must pay interest to the United States from the time of receiving the money. 6 Binn. Penn. 266.
3. Who are entitled to receive interest. The lender upon an express or implied contract for interest. Executors, administrators, etc. are in some cases allowed interest for ad vances made by them on account of the estates under their charge. 10 Pick. Mass. 77 ; 6 Ilalst. Ch. N. J. 44. Sec 9 Mass. 37. The rule has been extended to trustPes, 1 Binn. Penn. 488, and compound interest, even, allowed them. 16 Mass. 228.
On what claims. allowed. On express con tracts. When the debtor expressly under takes to pay interest, he or his personal representatives having assets are bound to pay it. But if a party has accepted the principal, it has been determined that he cannot recover interest in a separate action. 1 Esp. N. P. 110; 3 Johns. 220. See 1 Campb. 50; 1 Dal 1. 315 ; Stark. Ev. pt. iv. 787; 45 Me. 542 ; 9 Ohio St. 452.
4. On implied contracts where, from the course of dealings between the parties, a promise to pay is implied. 1 Campb. 50; 3
Brown, Ch. 436 ; Kirb. Conn. 207 ; 2 Wend. N. Y. 501 ; 4 id. 483 ; 2 Penn. N. J. 548 ; 33 Ala. N. s. 459; 8 Iowa, 163. On an account stated, or other liquidated sum, whenever the dehtor knows precisely what he is to ray and when he is to pay it. 2 W. Blackst. 61 ; Wile. 205 ; 2 Ves. Ch. 365 ; 8 Brown, Parl. Cas. 561; 2 Burr. 1085 ; 5 Esp. 114 ; 2 Comyns, Contr. 207 ; 1 Ilayw. No. C. 173; 2 Cox, N. J. 219 ; 12 Johns. IC Y. 156 ; 20 N.
Y. 463; 13 Ind. 475 ; 8 Fla. 161. But interest is not due for unliquidated damages, or on a running account where the items are all on one side, unless otherwise agreed upon. 1 Dail. Penn. 265 ; 2 Wend. N. Y. 501 ; 4 Cow. N. Y. 496 ; 5 id. 187 ; 6 id. 193; 5 Vt. 177 ; 1 Spew% So. C. 209; 1 Rice, So. C. 21; 2 Blackf. Ind. 313; 1 Bibb, Ky. 443 ; 20 Ark. 410. On the arrears of on annuity secured by a specialty, 14 Viner, Abr. 458, pl. 8 ; 3 Atk. Ch. 579; 9 Watts, Penn. 530, or given in lieu of dower. 1 Harr. Del. 106; 3 Watts & S. Penn. 437. On bills and notes. If pay able at a future day certain, after due, 3 Dev. & B. No. C. 70; 5 Humphr. Tenn. 406 ; 19 Ark. 690; 13 Mo. 252 ; if payable on demand, after a demand made. Bunb. 119; 6 Mod. 138 ; 1 Strange, Ch. 649 ; 2 Ld. Raym. 733: 2 Burr. 1081; 5 Ves. Ch. 133 ; 15 Serg. & R. Penn. 264; 1 M'Cord, So. C. 370 ; 6 Dan. Kv. 70 ; 1 Hempst. C. C. 155 ; 18 Ala. N. s. 300. See 4 Ark. 210. Where the terms of a promissory note are that it shall he payable by instalments, and on the failure of any instalment the whole is to become due, interest on the whole becomes payable from the first default. 4 Esp. 147. Where, by the terms of a bond or a promissory note, interest is to be paid annually, and the principal at a distant day, the interest may be recovered before the principal is due. 1 Binn. 165 ; 2 Mass. 568; 3 id. 221. See 2 Parsons, Notes & B. 391 et seq.
5. On a deposit by a purchaser, which he is entitled to recover back, paid either to a principal or an auctioneer. Sugden, Vend. 327 ; 3 Campb. 258 ; 5 Taunt. 625. But see 4 Taunt. 334, 341. For goods sold and delivered, after the customary or stipulated term of credit has expired. Doug]. 376 ; 2 Ens. & P. 337 ; 2 Dall. Penn. 193; 4 id. 289; 6 Binn. Penn. 162; 11 Ala. 451 ; 1 McLean,