408.175. Interest rate when maturity of note or contract accelerated.
Interest rate when maturity of note or contract accelerated.
408.175. If the maturity of a note or loan contractproviding for an amount of interest added to the principal of theloan is accelerated, the unpaid balance shall be reduced by therefund of that portion of the amount of interest originallycontracted for which would be required for prepayment in full onthe date of acceleration, and thereafter the note or loancontract shall bear interest at the rate originally contractedfor, computed on unpaid balances for the time actuallyoutstanding from the installment date following the date ofacceleration until paid.
(L. 1959 H.B. 321)