The only question in this cause was as to the mode of computing interest on a bond where partial payments had been made.
The plaintiff's counsel contended that a payment made at any time was to be applied first to the payment of the interest then due, and the residue to the principal.
Defendant's counsel answered that interest was not due till the end of the year, and that when a partial payment was made its application should wait the end of the year, and in the meantime interest should be calculated on the payment, and that at the end of the year the payment with the interest accrued on it should be deducted from the aggregate principal and interest of the debt. He cited [1] Dall. 124. plaintiff's counsel mentioned the case of [—] and Brown in which the principle he contended for had been ruled by the Court.
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PER CURIAM.
We have never had any doubt of the right of a creditor to apply any money paid to him to the payment of the interest due at the time, whether the year be expired or not. A creditor is not bound to receive a partial payment. If he does, it is a favor or accommodation to the debtor, and the creditor must not be put in a worse situation than if the whole debt had been paid. We consider that interest accrues and is due from day to day, and therefore that a creditor has a strict right to pay the interest accrued in the first place, at any time when a payment is made. And we apprehend the case is the same where interest is reserved and payments are made before the principal is due.