Page:Federal Reporter, 1st Series, Volume 2.djvu/507

 fiOO FEDEBAIi KEPORÏBK �BuRGESs V. SouTHBRiDGe Savings Bank and others. {Circuit Court, D. Massachusetts. May 7, 1880.) �MORTGAGE — InTEBEST ON DEBT AFTER DuE — lîTSURANCE PKBMltTMS PAID BY MOBÏGAGBE — ALLOWANCKS TO MûIlTSAGEE. �In Equity. �LowELL, C. J. The Southbriclge Savings Bank, holding a first mortgage upon the premises which are in controversy here, were made defendants, perhaps without necessity, but were made so, in this suit, and in several others, in which Thomas Burgess is plaintiiï. The controversy appears to be between the plaintiff and Mrs. Tyler, holding a second mort- gage, which the plaintiff says should be postponed to his, which is, in order of time, the third. �By consent of parties a decree was entered for a sale of the land by the savings bank, and for payment into court of the proceeds of sale, beyond what is due them on their mort- gage. The account has been rendered, and two or three questions are raieed upon certain charges made by the bank against the proceeds. �• The debt bears 7 per cent, interest by the agreement of the parties, and the first question is whether, after a default, the mortgagees are to charge that rate or only 6 per cent. Even if I am not positively bound by the decisions in Massachusetts I ought to foUow them in a case of this kind, unless they àppear to me decidedly unsound. I understand those decis. ions to be that the rate of interest agreed between the parties for the forbearance of money is, in general, understood to mean that the rate shall so continue until payment, or until judg- ment, and therefore is the true rule of damages under the statute of Massachusetts, which fixes the rate of 6 per cent, only when the parties bave failed to agree on some other. Brannon v. Hursell, 116 Mass. 63. �It is not worth while to examine into the niceties of the cases on this subject, because it is plain that both parties understood that this debt was to beat 7 per cent, interest. It ����