Negotiable Instruments Act Section 79 — Interest when rate specified

CHAPTER VI OF PAYMENTAND INTEREST

General

Summary

If a promissory note or bill of exchange clearly states that interest is payable at a specific rate, that rate is used to calculate the interest. The interest is figured on the principal amount that is due, starting from the date the instrument was made. It continues to accrue until the money is paid or offered to be paid, or until a court sets a different date after a lawsuit has been filed to recover the amount.

Official Text

When interest at a specified rate is expressly made payable on a promissory note or bill of exchange, interest shall be calculated at the rate specified, on the amount of the principal money due thereon, from the date of the instrument, until tender or realization of such amount, or until such date after the institution of a suit to recover such amount as the Court directs.