1. A debtor who is ready to pay his debt when it becomes due is excused from paying interest thereon if the creditor conceals his place of residence and the debtor knows not where to apply to make payment.
2. A gave his note to B, who, before it became due, was arrested and confined in jail; immediately after his confinement in Hillsborough jail he published a notice to his debtors, "that their notes were negotiated to persons living out of the State; but if any wished to make payment, by writing to him at Hillsborough, he would cause their notes to be placed in the hands of a person in New Bern, at a certain time; but if payment were not then made, the notes would be returned." The note of A was not due at the time appointed for B's debtors to make payment in New Bern, and before it became due, B was discharged from jail, and left the State secretly. His place of residence was unknown, and in writing to his friends he would often not date his letters from any particular place. A made inquiry for him, alleging that B held his note, which he wished to discharge: he had funds ready to pay the note, but could not ascertain where it was. Several years after the note became due, B assigned it to C, who gave notice of the assignment to A. A tendered to C the principal debt. C refused to accept it, unless he would also pay the interest. C sued A, who pleaded a "tender and refusal," and the Court were of opinion that the tender was good, and that A was not bound to pay interest upon his note.
From Orange.
The jury having found the whole interest against the defendant, a rule for a new trial was obtained, and the case was sent to this Court for the opinion of the judges upon the question, Whether the defendant ought to pay interest; and if so, to what amount?
BY THE COURT.
We are of opinion that the defendant ought not to be compelled to pay interest on his bonds, and that the rule for a new trial should be made absolute.
Cited: Peebles v. Gee, 12 N.C. 344.
(401)