734. Interest on covenant merges in judgment.

734.     Interest on covenant merges in judgment.

Where the mortgage deed provides for payment of interest on the principal debt after default and judgment for the principal debt is obtained, the mortgage debt is merged in the judgment, and, if the covenant to pay interest was merely incidental to the covenant to pay the principal debt, the interest will no longer be recoverable under the covenant to pay interest, but interest at the statutory rate1 is recoverable on the judgment2. Similarly, where the mortgage does not provide for interest after default, only the statutory rate is recoverable