742. Capitalisation of interest on transfer, or on redemption by later mortgagee.

Where at the time of the transfer of a mortgage there are arrears of interest due which the transferee pays to the transferor, he can add these to the principal so that from that time they will carry interest, if the transfer is made with the mortgagor's concurrence, but not otherwise1. In a foreclosure claim2 where successive periods of redemption3 are directed, interest is in effect capitalised