188. Agreement not to call in the principal.

If a mortgage contains an unqualified stipulation that the principal money is not to be called in for a certain time, it is binding even if the interest falls into arrear, but in general the understanding of the parties is that such an indulgence is conditional upon punctual payment of the interest1; and, upon an agreement for a mortgage with a stipulation that the principal is not to be called in for a given period, the mortgage must be framed to make postponement conditional upon punctual payment of interest2. Where, under an agreement to forgo the right to call

Popular documents