§ 25-3-112. Interest.

§25‑3‑112.  Interest.

(a)        Unless otherwiseprovided in the instrument, (i) an instrument is not payable with interest, and(ii) interest on an interest‑bearing instrument is payable from the dateof the instrument.

(b)        Interest may bestated in an instrument as a fixed or variable amount of money or it may beexpressed as a fixed or variable rate or rates. The amount or rate of interestmay be stated or described in the instrument in any manner and may requirereference to information not contained in the instrument. If an instrumentprovides for interest, but the amount of interest payable cannot be ascertainedfrom the description, interest is payable at the judgment rate in effect at theplace of payment of the instrument and at the time interest first accrues. (1899,c. 733, ss. 17, 68; Rev., ss. 1952, 2217, 2341; C.S., ss. 2998, 3049; 1965, c.700, s. 1; 1995, c. 232, s. 1.)