previous legatee for life, or, if there mention is made by the testator resbe, between the death of the previ-pecting the interest, nor any intenous taker and the happening of the tion to the contrary to be collected contingency, will sink into the resi- from the will, the rule appears to be due for the benefit of the next of kin now settled that the person taking or executor of the testator, if not for life, is entitled to interest from bequeathed by him; but if not dis- the death of the testator, on such posed of, for the benefit of his resi- part of the residue bearing interest, duary legatee. 1 Bro. C. C. 57; 4 as is not necessary for the payment Bro. C. C. 114; Meriv. 384; 2 of debts. And it is immaterial wheAtk. 329; Forr. 145; 2 Rop. Leg. ther the residue is only given gene224.-9. Where a legacy is given rally, or directed to be laid out with by immediate bequest whether such all convenient speed in funds or selegacy be particular or residuary, curities, or to be laid out in lands. and there is a condition to divest it See 6 Ves. 520; 9 Ves. 549, 553; upon the death of the legatee under 2 Rop. Leg. 234; 9 Ves. 89.-12. twenty-one, or upon the happening But where a residue is directed to of some other event, with a limita- be laid out in land, to be settled on tion over, and the legatee dies be- one for life, with remainder over, fore twenty-one, or before such other and the testator directs the interest event happens, which nevertheless to accumulate in the mean time, undoes take place, yet as the legacy til money is laid out in lands, or was payable at the end of a year otherwise invested on security, the after the testator's death, the lega- accumulation shall cease at the end tee's representatives, and not the of one year from the testator's death, legatee over, will be entitled to the and from that period, nt for interest which accrued during the life shall be entitled to the interest. legatee's life, until the happening of 6 Ves. 520; 7 Ves. 95; 6 Ves. the event which was to divest the 528; Ib. 529; 2 Sim. & Stu. 396.— legacy. 1 P. Wms. 500; 2 P. Wms. 13. Where no time of payment is 504; Ambl. 448; 5 Ves. 335; Id. mentioned by the testator, annuities 522.-10. Where a residue is given, are considered as commencing from so as to be vested but not payable the death of the testator; and conat the end of the year from the tes- sequently the first payment will be tator's death, but upon the legatee's due at the end of the year from that attaining twenty-one, or upon any event; if, therefore, it be not made other contingency, and with a be- then, interest, in those cases wherein quest over divesting the legacy, up- it is allowed at all, must be compuon the legatee's dying under age, or ted from that period. 2 Rop. Leg. upon the happening of the contin- 249; 5 Binn. 475. See 6 Mass. 37. -gency, then the legatee's represen- §4. As to the quantum or amount tatives in the former case, and the of interest allowed. 1, During what legatee himself in the latter, shall time; 2, simple interest; 3, combe entitled to the interest that be- pound interest; 4, in what cases came due, during the legatee's life, given beyond the penalty of a bond; or until the happening of the con- 5, when foreign interest is allowed. tingency. 2 P. Wms. 419; 1 Bro. First. During what time. 1. In C. C. 81; Id. 335; 3 Meriv. 335.-actions for money had and received, 11. Where a residue of personal es- interest is allowed in Massachusetts tate is given generally, to one for from the time of serving the writ. 1 life with remainder over, and no Mass. 436. On debts payable on VOL. I.-67.

demand, interest is payable only | 1 Vin. Abr. 457, tit. Interest, (C); from the demand. Addis. 137. See Com. Dig. Chancery, 3 S 3; 3 12 Mass. 4. The words "with in- Hen. & Munf. 89. terest for the same," bear interest from date. Addis. 323, 4; 1 Stark. N. P. C. 452; Ibid. 507.-2. The mere circumstance of war existing between two nations, is not a sufficient reason for abating interest on debts due by the subjects of one belligerent to another. 1 Peters's C. C. R. 524; but a prohibition of all intercourse with an enemy during war, furnishes a sound reason for the abatement of interest until the return of peace. Ib. See on this subject, 2 Dall. 132; 2 Dall. 102; 4 Dall. 286; 1 Wash. 172; 1 Call, 194; 3 Wash. C. C. R. 396; 8 Serg. & Rawle, 103; Post. § 7.

Secondly. Simple interest. 1. Interest upon interest is not allowed except in special cases, and the uniform current of decisions is against it, as being a hard, oppressive exaction, and tending to usury. 1 Johns. Ch. R. 14; Cam. & Norw. Rep.

361.

Fourthly. When given beyond the penalty of a bond. 1. It is a general rule that the penalty of a bond limits the amount of the recovery. 2 T. R. 388. But in some cases the interest is recoverable beyond the amount of the penalty. The recovery depends on principles of law, and not on the arbitrary ad libitum discretion of a jury. 3 Caines's Rep. 49.-2. The exceptions are where the bond is to account for moneys to be received; 2 T. R. 388; where the plaintiff is kept out of his money by writs of error; 2 Burr. 1094; 2 Evans's Poth. 101, 2; or delayed by injunction, 1 Vern. 349; 16 Vin. Abr. 303; if the recovery of the debt be delayed by the obligor, 6 Ves. 92; 1 Vern. 349; Show. P. C. 15; if extraordinary emoluments are derived from holding the money, 2 Bro. P. C. 251; or the bond is taken only as a collateral security, 2 Bro. P. C. 333; or the action be on a judgment recovered on a bond, 1 East, 436; see also 4 Day's Cas. 30; 3 Caines's R. 49; 1 Taunt. 218; 1 Mass. 308; Com. Dig. Chancery, 3 S 2; Vin. Abr. Interest, E.-3. But these exceptions do not obtain in the administration of the debtor's assets, where his other creditors might be injured by allowing the bond to be rated beyond the penalty, 5 Ves. 329; see Vin. Abr. Interest, C. pl. 5.

Thirdly. Compound interest. 1. Where a partner has overdrawn the partnership funds, and refuses, when called upon, to account, to disclose the profits, recourse would be had to compound interest as a substitute for the profits he might reasonably be supposed to have made. 2 Johns. Ch. R. 213.-2. When executors, administrators, or trustees convert the trust money to their own use or employ it in business or trade, they Fifthly. When foreign interest is are chargeable with compound inte- allowed. 1. The rate of interest rest. 1 Johns. Ch. R. 620.-3. allowed by law where the contract In an action to recover the annual is made, may, in general, be recointerest due on a promissory note, vered; hence where a note was interest will be allowed on each given in China, payable eighteen year's interest until paid. 2 Mass. 568; 8 Mass. 455. See as to charging compound interest the following cases: 1 Johns. Ch. Rep. 550; Cam. & Norw. 361; 1 Binn. 165; 4 Yeates, 220; 1 Hen. & Munf. 4;

months after date, without any stipu lation respecting interest, the court allowed the Chinese interest of one per cent. per month from the expiration of the eighteen months, 1 Wash. C. C. R. 253.-2. If a citizen of an

other state, advance money there for the benefit of a citizen of the state of Massachusetts, which the latter is liable to reimburse, the former shall recover interest, at the rate established by the laws of the place where he lives. 12 Mass. 4. See further, 1 Eq. Cas. Ab. 289; 1 P. Wms. 395; 2 Bro. C. C. 2; 14 Vin. Abr. 460, tit. Interest, (F).

and he refuses to receive it, the interest ceases. 3 Campb. 296. Vide 8 East, 168; 3 Binn. 295.-2. Where the plaintiff was absent in foreign parts, beyond seas, evidence of that fact may be given in evidence to the jury on the plea of payment, in order to extinguish the interest during such absence. 1 Call, 133. But see 9 Serg. & Rawle, 263.—3. Whenever the law prohibits the payment of the principal, interest during the prohibition is not demandable. 2 Dall. 102; 1 Peters's C. C. R. 524. See also 2 Dall. 132 ; 4 Dall. 286.— 4. If the plaintiff has accepted the principal he cannot recover the interest in a separate action. 1 Esp. N. P. C. 110; 3 Johns. 229.

§ 4. How computed.-In casting interest on notes, bonds, &c. upon which partial payments 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. 17 Mass. R. 417; 1 Dall. 378.-2. When a partial payment exceeds the amount of in- § 7. Rate of interest allowed by terest due when it is made, it is cor- law in the different states. Six per rect to compute the interest to the cent. is allowed by law in Connectitime of the first payment, add it to cut. 3 Griff. L. R. 77; Delaware, the principal, subtract the payment, 4 Griff. L. R. 1068; Indiana, 3 cast interest on the remainder to the Griff. L. R. 467; Maine, Id. 1005; time of the second payment, add it Massachusetts, 4 Griff. L. R. 517; to the remainder, and subtract the Maryland, Id. 942; North Carolina, second payment, and in like man- 3 Griff. L. R. 224; New Hampner from one payment to another, shire, Id. 47; Ohio, Id. 403 ; Pennuntil the time of judgment. 1 Pick. sylvania, Purd. Dig. 547; Rhode 194; 4 Hen. & Munf. 431; 8 Serg. Island, 3 Griff. L. R. 116; Tennes& Rawle, 458; 2 Wash. C. C. R. see, 4 Griff. L. R. 795; Vermont, 167. See 3 Wash. C. C. R. 350; 3 Griff. L. R. 21; Virginia, Id. Ibid. 396.-3. Where a partial pay- 362. Seven per cent. is the legal ment is made before the debt is due, interest in New Jersey, 4 Griff. L. it cannot be apportioned, part to the R. 1299; New York, 3 Griff. L. R. debt and part to the interest. As if 142; South Carolina, 4 Griff. L. R. there be a bond for one hundred dol-863. In Alabama, 4 Griff. L. R. lars, payable in one year, and, at the 585, and Georgia, 3 Griff. L. R. expiration of six months, fifty dollars be paid in. This payment 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. 1 Dall. 124.

445, eight per cent. is the legal interest. In Illinois six per cent. is allowed where there is no agreement, but by agreement the parties may fix a greater rate. 3 Griff. L. R. 423. In Kentucky six per cent. excepting on notes, &c. to any corporation having an office in the state, and not incorporated by the state; § 6. When interest will be bar-such corporation can recover only red.-1. Where the money due is one per cent. In Louisiana legal tendered to the person entitled to it, interest is five per cent. which, when

not stipulated otherwise, begins to run from the commencement of the suit only, and is called judicial interest; but promissory notes and bills regularly protested, carry interest from the date of the protest. By agreement interest may be charged at the rate of ten per cent. The banks are authorised to demand six per cent. and one of them may exact at the rate of nine, where money is loaned for four months or upwards. 4 Griff. L. R. 696. In Mississippi there is no law against usury; where there is no bargain as to the rate of interest, eight per cent. is allowed. 4 Griff. L. R. 470. In Missouri six per cent. is allowed where there is no agreement, but ten per cent. may be charged. 4 Griff. L. R. 626, 7.

they make use of the term maritime profit, to convey their meaning. Hall on Mar. Loans, 56, n.

INTEREST, evidence, is the benefit which a person has in the matter about to be decided and which is in issue between the parties. By the term benefit is here understood some pecuniary or other advantage, which, if obtained, would increase his estate. This interest renders such person incompetent to be a witness in such a case. To disable a witness, his interest must be a legal, certain and immediate benefit in the cause or matter in issue, or in the record as an instrument of evidence. 1 Phil. Ev. 36; Stark. Ev. pt. 4, p. 744; and must have been acquired without fraud. 3 Camp. R. 380; 1 M. & S. 9; 1 T. R. 37. It must be a legal interest as contradistinguished from mere prejudice or bias, arising from relationship, friendship, or any of the numerous motives by which a witness may be supposed to be influenced. Leach, 154; 2 St. Tr. 334, 891; 2 Hawk. c. 46, s. 25. The interest must be a present, certain, vested interest, and not uncertain and contingent. Doug. R. 134; 1 P. Wms. 287; 3 Serg. & Rawle, 132; 4 Binn. R. 83; 2 Yeates, R. 200; 5 Johns. R. 256; 7 Mass. R. 25. The magnitude of the interest is altogether immaterial.

INTEREST, MARITIME. By maritime interest is understood the profit of money lent on bottomry or respondentia, which is allowed to be greater than simple interest because the capital of the lender is put in jeopardy. There is no limit by law as to the amount which may be charged for maritime interest. It is fixed generally by the agreement of the parties. The French writers employ a variety of words in order to distinguish it according to the nature of the case. They call it interest, when it is stipulated to be paid by the month, or at other stated pe- 5 T. R. 174; 2 Vern. R. 317; 2 riods. It is a premium when a gross Greenl. R. 194; 11 Johns. R. 57. sum is to be paid at the end of the To the general rule that interest voyage, and here the risk is the renders a witness incompetent, there principal object they have in view. are some exceptions; 1st. When the When the sum is a per centage on witness is reduced to a state of neuthe money lent, they call it exchange, trality by an equipoise of interest considering it in the light of money the objection to his testimony ceases. lent at one place to be returned in 7 T. R. 480, 481, n; 1 Bibb, R. another, with a difference in amount 298; 2 Mass. R. 108; 2 Serg. & between the sum borrowed and that Rawle, 119.-2d. In some cases the which is paid, arising from the dif- law admits the testimony of one inference of time and place. When terested, from the extreme necessity they intend to combine these various of the case: upon this ground the shades into one general denomination, servant of a tradesman is admitted to

This

INTERLOCUTORY.

prove the delivery of goods and the payment of money, without any re- word is applied to signify something lease from the master. 4 T. R. which is done between the com490; 2 Litt. R. 27. The objection mencement and the end of a suit or to incompetency on the ground of action which decides some point or interest may be removed by an ex-matter, which however is not a final tinguishment of that interest by decision of the matter in issue; as, means of a release, executed either interlocutory judgments, or decrees by the witness or by those who have or orders. Vide Judgment, intera claim upon him, or by payment. locutory. Stark. Ev. pt. 4, p. 757. See 5 INTERPLEADER, practice. Benth. Rationale Jur. Ev. 628-692, Vide Bill of Interpleader, and 8 where he combats the established Vin. Ab. 419; Doct. Pl. 247; 3 Bl. doctrines of the law.

Com. 448; Com. Dig. Chancery,

INTERLOPERS. Persons who 3 T. interrupt the trade of a company of merchants, by pursuing the same business with them in the same place, without lawful authority.

INTERPRETATION, is the explication of a law, agreement, will or other instrument which appears obscure or ambiguous. The object INTERLINEATION, in con- of interpretation is to find out or coltracts, evidence, is writing between lect the intention of the maker of two lines. Interlineations are made the instrument, either from his own either before or after the execution words, or from other conjectures or of an instrument. Those made be- both. It may then be divided into fore should be noted previous to its three sorts, according to the different execution; those made after are means it makes use of for obtaining made either by the party in whose its end. These three sorts of interfavour they are, or by strangers. pretations are either literal, rational When made by the party himself, or mixed. When we collect the inwhether the interlineation be mate- tention of the writer from his words rial or immaterial, they render the only, as they lie before us, this is a deed void, 1 Gall. Rep. 71, unless literal interpretation; when his made with the consent of the oppo- words do not express his intention site party. Vide 11 Co. 27 a; 9 perfectly, but either exceed it, or Mass. Rep. 307; 15 Johns. R. 293; fall short of it, so that we are to col1 Dall. R. 67. When the interlinea- lect it from probable or rational contion is made by a stranger, if it be jectures only, this is rational interimmaterial, it will not vitiate the in-pretation; and when his words, strument, but if it be material, it will though they do express his intention, in general avoid it. Vide Cruise, when rightly understood, are in Dig. tit. 32, c. 26, s. 8; Com. Dig. Fait, F 1. The presumption is, that a material interlineation was made after the execution of an instrument, unless the contrary be proved. 1 Dall. 67. This doctrine corresponds nearly with the rules of the canon law on this subject. The canonists have examined it with care. Vide Toull. Dr. Civ. Fr. liv. 3, t. 3, c. 4, nal. 1. The authentic interpretan. 115, and article Erasure. tion is that which refers to the legis

themselves of doubtful meaning, and we are forced to have recourse to like conjectures to find out in what sense he used them; this sort of interpretation is mixed; it is partly literal, and partly rational.

According to the civilians there are three sorts of interpretations, the authentic, the usual, and the doctri