1. MCA Contents
  2. TITLE 31
  3. CHAPTER 1
  4. Part 1
  5. 31-1-109 When interest becomes part of principal

TITLE 31. CREDIT TRANSACTIONS AND RELATIONSHIPS

CHAPTER 1. CREDIT TRANSACTIONS

Part 1. Loans of Money -- Interest Rates

When Interest Becomes Part Of Principal

31-1-109. When interest becomes part of principal. The parties may, in any contract in writing whereby any debt is secured to be paid, agree that, if the interest on such debt is not punctually paid, it shall become a part of the principal and thereafter bear the same rate of interest as the principal debt.

History: En. Sec. 2587, Civ. C. 1895; re-en. Sec. 5213, Rev. C. 1907; re-en. Sec. 7728, R.C.M. 1921; Cal. Civ. C. Sec. 1919; re-en. Sec. 7728, R.C.M. 1935; R.C.M. 1947, 47-127.