But these exceptions do not obtain in the administration of the debtor's assets where his other creditors might be injured by al lowing the bond to be rated beyond the pen alty; 5 Ves. 329. See Viner, Abr. Interest (C 5).
Interest may be added to the amount of recovery on a bond although t1:2 tota'7,sum exceeds the penalty thereof ; Arne. ty Co. v. Surety Co., 81 Conn. 25,44 Atl. 584, 19 L. R. A. (N. S.) 83.
Upon a bond given to appear in a United States court to answer to an indictment, no interest can be recovered ; U. S. v. Broad head, 127 U. S. 212, 8 Sup. Ct. 1191, 32 L. Ed. 147.
As to the allowance of foreign interest. The rate of interest of the place of perform ance is to be allowed, where such place is specified; De Wolf v. Johnson, 10 Wheat. (U. S.) 367, 6 L. Ed. 343 ; Scofield v. Day, 20 Johns. (N. Y.) 102 ; Braynard v. Marshall, 8 Pick. (Mass.) 194 ; Hawley v. Sloo, 12 La. Ann. 815 ; Thomas v. Beckman, 1 B. Monr. (Ky.) 29 ; Archer v. Dunn, 2 W. & S. (Pa.) 327; Austin v. Imus, 23 Vt. 286; Vinson v.. Platt, 21 Ga. 135; Whitlock v. Castro, 22 Tex. 108 ; Davis v. Coleman, 29 N. C. 424; 5. C. & F. 1; otherwise, of the place of mak ing the contract ; 11 Ves. 314 ; Winthrop v. Carleton, 12 Mass. 4 ; Ingraham v, Arnold, 1 J. J. Marsh. (Ky.) 406 ; Arrington v. Gee, 27 N. C. 590; Fanning v. Consequa, 17 Johns. (N. Y.) 511, 8 Am. Dec. 442 ; Lapice v. Smith, 13 La. 91, 33 Am. Dec. 555 ; Smith v. Mead, 3 Conn. 253, 8 Am. Dec. 183; Hill v. George, 5 Tex. 87 ; 'Wheeler v. ,Pope, id. 262. But the rate of interest of either place may be reserved ; and this provision will govern, if an honest transaction and not a cover for usury ; Mullen v. Morris, 2 Pa. 85 ; Peck v. Mayo, 14 Vt. 33, 39 Am. Dec. 205 ; Depau v. Humphreys, 8 Mart. N. S. (La.) 1; Van Schaick v. Edwards, 2 Johns. Cas. (N. Y.) 355 ; De Wolf v. Johnson, 10 Wheat. (U. S.) 367, 6 L. Ed. 343. Coupons, after their ma turity, bear interest at the rate fixed by the law of the place where they are payable, where there is no stipulation as to the rate after maturity ; Cairo v. Zane, 149 U. S. 122, 13 Sup. Ct. 803, 37 L. Ed. 673; Scotland County v. Hill, 132 U. S. 107, 10 Sup. Ct. 26, 33 L. Ed. 261. See also Dicey, Confl. L., Moore's ed. 616, 625.
How. computed. In casting interest on notes, bonds, etc., upon which partial pay
ments have been made, every payment is to be first applied to keep down the interest; but the interest is never allowed to form a part of the principal so as to carry interest ; Smith v. Shaw, 2 Wash. C. C. 167, Fed. Cas. No. 13,107; Meredith v. Banks, 6 N. J. L. 408 ; Anonymous, 3 N. C. 17; Dean v. Wil liams, 17 Mass; 417 ; Treat v. Stanton, 14 Conn. 445 ; Woodward v. Jewell, 140 U. S. 247, 11 Sup. Ct. 784, 35 L. Ed. 478.
When a partial payment exceeds the amount of interest due when it is made, it is correct to compute the interest to the time of the first payment, add it to the principal, subtract the payment, cast interest on the remainder to the time of the second payment, add it to the remainder, and subtract the second payndent, and in like manner from one to another, until the time of judgmet.; Pert Int. 168; Fay v. Bradley, 1 Pick. (Mass.) 194; Lightfoot v. Price, 4 Hen.
& M. (Va.) 431; Corn. v. Vanderslice, 8 S. & R. (Pa.) 458 ; Smith v. Shaw, 2 Wash. (C. C.) 167, Fed. Cas. No. 13,107. See Williams v. Houghtaling, 3 Cow. (N. Y.) 86. The same rule applies to judgments ; Hodgdon v. Hodg don, 2 N. H. 169 ; Com. v. Vanderslice, 8 S. & R. (Pa.) 452.
Where a partial payment is made before the debt is due, it cannot be apportioned part to the debt and part to the interest. As, if there be a bond for one hundred dollars, pay able in one year, and at the expiration of six months fifty dollars be paid in, this pay ment shall not be apportioned part to the principal and part to the interest, but at the end of the year, interest shall be charged on the whole sum, and the obligor shall receive credit for the interest of fifty dollars for six months ; Tracy v. Wikoff, 1 Dall. (Pa.) 124, 1 L. Ed. 65.
A secured creditor of a bankrupt, selling his securities after the filing of the petition, must apply the proceeds, other than interest and dividends accrued since the filing, first to pay the debt with interest to date of peti tion, and not first to pay interest accrued since the petition. Interest and dividends accrued after the filing can be applied to in terest on the debt accrued after the filing. This is also the English rule ; Sexton v. Drey fus, 219 U. S. 339, 31 Sup. Ct. 256, 55 L. Ed. 244.