interest

interest is not recovered according to a rigid theory of compensation for money withheld, but is given in response to considerations of fairness. It is denied when its exaction would be inequitable.

+ 3 more definitions — see all 11 over time

(Lat.) It concerns; it is of advantage. In Contracts. The right of property which a man has in a thing. See "Insurable Interest." On Debts. The compensation which is paid by the borrower of money to the lender for its use, and, generally, by a debtor to his creditor in recompense for his detention of the debt.

MARITIME. See Maritime Interest.

In property. The most general term that can be employed to denote a property in lands or chattels. ' In its application to lands or things real, it is frequently used in connection with the terms "estate," "right," and "title," and, according to Lord Coke, it properly includes them all. Co.. Litt. 345b. See Ragsdale v. Mays, 65 Tex. 257; Hurst v. Hurst, 7 W. Va. 297; New York v. Stone, 20 Wend. (N. Y.) 142; Sinte v. Mc-Kellop, 40 Mo. 185; Loventhal v. Home Ins. Co.., 112 Ala. 116, 20 South. 419, 33 L R. A. 258, 57 Am. St. Rep. 17. More particularly it means a right to have the advantage accruing from anything; any right in the nature of property, but less than title; a partial or undivided right; a title to a share. The terms "interest" and "title" are not synonymous. A mortgagor in possession, and a purchaser holding under a deed defectively executed, have, both of them, absolute as well as insurable interests in the property, though neither of them has the legal title. Hough v. City F. Ins. Co., 29 Co.nn. 20, 76 Am. Dec. 5Si.

— Absolnte or conditional. That is an absolute interest in property which is so completely vested in the individual that he can by no contingency be deprived of it without his own consent. So, too, he is the owner of such absolute interest who must necessarily sustain the loss if the property is destroyed. The terms "interest" and "title" are not synonymous. A mortgagor in possession, and a purchaser holding under a deed defectively executed, have, both of them, absolute, as well as insurable, interests in the property, though neither of them has the legal title. "Absolute" is here synonymous with "vested," and is used in contradistinction to contingent or conditionai. Hough v. City F. Ins. Co., 29 Co.nn. lO, 76 Am. Dec. 581; Garver v. Hawkeye Ins. Co., 69 Iowa, 202. 28 N. W. 556; Washington F. Ins. Co. v. Kelly, 32 Md. 421, 431, 3 Am. Rep. 149; Elliott v. Ashland Mut. F. Ins. Co., 117 Pa. 548, 12 Ail. 676, 2 Am. St. Rep. 703 ; Williams v, Buffalo German Ins. Co. (C. C) 17 Fed. 63.

— Interest or no interest. These words, inserted in an insurance policy, mean that the question whether the insured has or bas not an insurable interest in the subject-matter is waived, and the policy is to be good irrespective of such interest. The effect of such a clause is to make it a wager policy.

— Interest policy. In insurance. One which actually, or prima fade, covers a substantial and insurable interest; as opposed to a wager policy.

— Interest suit. In English law. An action in the probate branch of the high court of justice, in which the question in dispute is as to which party is entitled to a grant of letters of administration of the estate of a deceased person. Wharton. In the law of evidence. "Interest," in a statute that no witness shall be excluded by interest in the event of the suit, means "concern," "advantage," "good," "share," "portion," "part," or "participation." Fitch v. Bates, 11 Barb. (N. Y.) 471; Morgan v. Johnson, 87 Ga. 382, 13 S. E. 710. A relation to the matter in controversy, or to the issue of the suit, in the nature of a prospective gain or loss, which actually does, or presumably might, create a bias or prejudice in the mind, inclining the person to favor one side or the other. For money. Interest is the compensation allowed by law or fixed by the parties for the use or forbearanco or detention of money. Civ. Code Cal. § 1915; Williams v. Scott, 83 Ind. 408; Kelsey v. Murphy, 30 Pa. 341; Williams v. American Bank, 4 Mete. (Mass.) 317; Beach v. Peabody, 188 III. 75, 58 N. E. 680. Classification.

— Conventional interest. interest at the rate agreed upon and fixed by the parties themselves, as distinguished from that which the law would prescribe in the absence of an explicit agreement. Fowler v. Smith, 2 Cal. 568; Rev. St. Tex. 1895, art. 3099.

— Legal interest. That rate of inters est prescribed by the laws of the particular state or country as the highest which may be lawfully contracted for or exacted, and which must be paid in all cases where the law allows interest without the assent of the debtor. Towslee v. Durkee, l2 Wis. 485; American, etc., Ass'n v. Harn (Tex. Civ. App.) 62 S. W. 75; Beals v. Amador County, 35 Cal. 633.

— Simple Interest. that which is paid for the principal or sum lent, at a certain rate or allowance, made by law or agreement of parties.

— Compound interest. interest upon interest, where accrued interest is added to the principal sum, and the whole treated as a new principal, for the calculation of the interest for the next period.

— Ex-interest. In the language of stock exchanges, a bond or other interest-bearing security is said to be sold "ex-interest" when the vendor reserves to himself the interest already accrued and payable (if any) or the interest accruing up to the next interest day.

— Interest, maritime. See Maritime Interest.

— Interest npon interest. Compound interest.

Concern; benefit; advantage; concern, benefit or advantage which the trial; a sum of money, or other by way of compensation for the loan most general term that can be used to chattels. Interest or no interest: a otherwise called wagering, where the on board.

In property. The most general term that can be employed to denote # property in lands or chattels. In its application to Jands or things real, it is frequently used in connection with the terms “estate,” “right,” and “title,” and, according to Lord Coke, it properly includes themall. Co. Litt, 3456. More particularly it means a right to have the advantage accruing from anything; any right in the nature of property, but Jess than title; a partial or undivided right; a title to a share. The terms “interest” and “title” are not synonymous. A mortgagorin possession, and a purchuser holding under a deed defectively executed, have, both of them, absolute as well as insurable interests in the property, though neither of them has the legal title. 29 Conn. 20. In the law of evidence. “Interest,” in a statute that no witness shill be excluded by interest in the event of the snit, means “concern,” “advantage,” “good,” “share, “ portion,” “part,” or “participation.” i1 Barb. 471; 11 Mete. (Mass.) 390. A relation to the matter in controversy, or to the issue of the suit, in the nature of a prospective gain or loss, which actually does, or presumably might, create a bias or prejudiea in the mind, inclining the person to favor one side or the other. For money. Interest is the compensation allowed hy law or fixed by the parties for the use or forbearance or detention of money. Civil Code Cal. § 1915. Legal interest is the rate of interest established by the law of the country, and which will prevail in the absence of express stipulation; conventional interest is a certain rate agreed upon by the parties. 2 Cal. 563. Simpie interest is that which is paid for the principal or sum lent, at a certain rate or allowance, made by law or agreement of parthe principal sum, and the whole treated as a new principal, for the calculation of the interest for the next period.

Lat. It interests, concerns, is of importance to. Interest reipiiblicae ut sit flnis litium. It concerns the commonwealth that there be an end to lawsuits. The general welfare requires that litigation be not interminable. No maxim is more firmly established or of more value in the administration of justice. It prevents repeated litigation between the same parties in regard to the same subject.' It prevents multiplicity of suits." In it originates the rule against circuity of action; ' 2 Bl. Com. 144, 314. a 4 Kent, 106; 72 Mo. 542. 3 106U. S. B65. 'United States v. Throckmorton, 98 U. S. 65 (1878); MUes V. Caldwell, 2 Wall. 39 (1864); 3 Bl. Com. 308. J Stark V. Starr, 94 U. S. 485 (1876); 71 Pa. 177; 2 Pars. and it states the principle upon whioli rest statutes of setrofl and of limitations. For this reason, the prevention of litigation is a valid consideration,' For this reason, also, but one action lies for aU the articles converted by one aot,^ It is the policy of the law to settle in one suit the interests, of all parties in the subject-matter, leaving as little room as possible for multiplicity of actions.' 3. Eng. (1) Concern, advantage, good; share, portion, part, participation.* Concern, advantage, benefit. Such relation to the matter in issue as creates a liability to pecuniary gain or loss from the event of the suit.5 Opposed, disinterest. In this sense a witness is said to be incompetent, and a judge or juror disqualified, from interest. At common law, a party could testify for himself only when he alone knew the matter to be proved. This was to prevent absolute failure of justice, where his right to relief was shown by other evidence.* An interest disqualifying a witness, at common law, must be legal, real, substantial, present, certain, vested, and ex parte. Interest in the question is not meant, nor inclination arising from relationship, friendship, or other motive. The meaning is that parties legally interested in the result are incompetent. This interest is to be real, not merely apprehended, and in the event of the cause. The true test regards gain or loss by the judgment. The degree is not regarded. A remote, contingent, uncertain interest does not disqualify. One may testify against his interest; and an offer to release an interest qualifies.' ' Equal interest on both sides does not disqualify. Objection for interest must be made before examination. Precisely what interest disqualifies is largely a question for the court. ^ But the common-law rule has been generally abrogated. The effect of interest upon credibility is now left to the jury to determine.' See further Pabtt, 8; Witness. (2) Right of property in a thing. May denote the property itself, objectively considered.9 A claim to advantage or benefit; any ' 1 Pars. Contr. 438; Smith, Contr. 179. " Phillips V. Berick, 16 Johns. 140 (1819). See also 105 111. 108. ■ Eckford v. Knox, 67 Tex. 205 (1886); 8 Kan. Law J. 880 (1885); 6 Tex. 446; 30 F. E. 911; 41 N. J. E. 443; 7 Mass. 432; 99 id. 203; 4 Allen, 473; 16.Gray, 87; 5 id. 197; 1 id. 303; 24 Pick. 61; 22 id. 83; 21 id. 263; 20 id. 290; 15!U 286. ' Fitch V. Bates, 11 Barb. 473 (1851). ' Bouvier, Law Diet.; Inhabitants of Northampton V. Smith, 11 Mete. 394-96 (1846), oases, Shaw, C. J. •United States v. Clark, 96 U. S. 41 (1877); 3 Bl. Com. 370;,l Greenl. Ev. §.348. ' 1 Greenl. Bv. §§ 386-430, oases. s 1 Whart. Ev. § 419; 30 Hun, B57; 63 Pa. 156; 64 id. 89; right, in the nature of property, less than title; title to a share.' Spoken of as present or vested, contingent or future, chattel or landed, beneficial, reversionary, undivided, legal, equitable, etc. The quantum depends upon the title in the possessor. As respects realty, this may be freehold or less; as respects chattels, it is Joint, — shared with other persons; or several or sole, — possessed by on© person exclusively, or by more than one, their interests then not being in common. The chief use of the word is to designate some right which cannot or need not be defined with precision. In some connections it includes title; in others, advantages less than title. Sometimes it is added to words of more definite meaning by way of precaution that no conceivable claim shall be omitted; sometimes it signifies an undefined share.' Compare Claiu; Demans. Community of interest. See Community, 1. Coupled with an interest. Said of an agency in which the agent has a business interest, along with his principal. A power coupled with an interest is where the grantee has an interest in the estate as well as in the exercise of the power. It is deteiTQined to exist or not according as the agent is found to have such estate or not before the execution of the power. If his interest is only a right to share the proceeds which result from the execution of the power, he has no such power. 2 Such a power survives the person giving it, and may be executed after his death. This refers to an interest in the thing itself, a power which accompanies, or is connected with, an interest.' Equitable interest. Such interest as is cognizable in a court of equity. Iiegal interest. An interest cognizable in a court of common law. Immediate interest. See Immediate. Interest or no interest. Refers to g. policy of insurance which is to be valid whether the insured has or does not have an insurable interest,* q. v. Opposing interest. At the meeting of the creditors of a bankrupt to elect an assignee, if no choice was made, the judge, or, if there was " no opposing interest," the register, appointed a person. This meant, not merely an interest contending by vote for the election of a particular person, but an interest in ' [Abbott's Law Diet. = Flanagan v. Brown, 70 Cal. 259 (1886); Brown v. Pforr, 38 id. 550 (1869); Hartley's Appeal, 53 Pa. 218 (1866); Frink v. Eoe, 70 Cal. 310 (1886). ' Hunt V. Eousmanier, 8 Wheat. 203 (1823), Marshall, C. J.; Walker v. Walker, 125 U. S. 343 (1888); 59 Tex. opposition to the power of appointment by the register.' (3) Increase by way of compensation for the use of money; price or reward for the loan of money; a premium for the hire of money; a reasonable equivalent for the temporary inconvenience the lender of money may feel by the want of it.^ Compensation allowed by law, or fixed by the parties, for the use or forbearance of money, or as damages for it detention.' A compensation for the loan or use of money.* The measure of damages for money withheld upon contract, s Though interest, eo nomine, may be a creation of statute law, it is allowed as mulct or punishment for some fraud, delinquency, or injustice of the debtor, or from some injury done by him to the creditor.* Simple interest. Interest computed solely upon the principal of the loan. Compoiind interest. Is reckoned upon the principal for the first period, and thereafter upon both principal and accrued interest; interest upon interest. " Compound interest " signifies the adding of the growing interest of any sum to the sum itself, and then the taking of interest upon this accumulation.' At interest. In ordinary parlance "money at interest " refers more to money loaned than to interest-bearing notes and accounts received for property sold. 8 Ex-interest. Said of a sale of stocks or bonds without interest already or soon payable. See Ex, 3. With interest. When a note is made payable at a future day, " with interest " at

/. It concerns; it benefits. Interest reipublicse, it is of public importance, ne maleficia remaneant impunita, that crimes should not remain unpunished; ne sua quis male utatur, that no one make bad use of his property; quod homines conserventur, that the [lives of] men be preserved; res judicatas non rescind!, that things once adjudged should not be rescinded; suprema hominum testamenta rata haberi, that men's last wills be held valid; ut carceres sint in tuto, that prisons be secure; ut finis sit litium, that there should be an end of suits.

estates, is the right which a man has in a chattel real, and more particularly in a future term. It is a word of less efficacy and extent than estates, though, in legal understanding, an interest extends to estates, rights and titles which a man has in or out of lands, so that by a grant of his whole interest in land, a reversion as well as the fee simple shall pass. Co. Litt. 345.