Case ID: ohio-law-abs_3/html/0332-01.html
Source: Caselaw Access Project
Author: {"author": "ALLEN, J.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

No. 506
    No. 18398
    Carr v. Doan Savings & Loan Co.
    Error to the Court of Appeals of Cuya-hoga County.
    147. BILLS AND NOTES —1. Interest computed from date of instrument when no other specification.
    2. Withholding and having money in readiness to pay borrower in installments as building progresses, is valuable consideration and interest is due lender under terms of notes.
    3. Interest must be computed on sums actually advanced and not on face of the notes.
   ALLEN, J.

1. Where a written instrument is payable at a future day, with interest, and nothing is stated thereon as to the commencement of the interest period, the interest is computed from the date of the instrument.

2. When one contracts to loan money to another for use in building contracts, and sets aside the money in readiness to be paid the borrower in installments as the building progresses, the withholding of the money from use constitutes a valuable consideration, and the lender is entitled to interest according to the terms of the notes evidencing the contract.

, 3. As the lender is under no obligation, after the maturity of the notes, to pay the borrower, interest after the maturity of the notes must be calculated upon the money actually advanced to the borrower and not upon the amount embodied in the face of the notes.

Judgment modified.

Marshall, C. J., Matthias, Day and Robinson, JJ., concur. Kinkade, J., not participating.