§ 54-57. Terms of payment.

§54‑57.  Terms of payment.

A borrower may repay his loanby installments of such frequency and amounts as may be agreed upon: Provided,that not less than one percent (1%) of the original amount of the mortgageshall be paid upon the principal thereof annually, and commencing not laterthan the sixth year succeeding the year in which the loan was made the borrowermay pay a larger installment upon the principal, or the whole of it, at anyinterest date, such payments to be in amounts equal to additions of one or moreprincipal amortization payments. Such payment may be made in cash, or bytendering at par bonds of the association. For failure to pay the interest orany installment required by the terms of the loan, the borrower may be fined asthe bylaws may prescribe. But the borrower shall never be required to pay morethan the specified installment, nor to pay the principal before it is dueexcept as prescribed herein for partial repayment on account of depreciationand for foreclosure by the association. The borrower may on 60 days' noticerepay the association his total indebtedness, or, without such notice, uponpayment of 60 days' interest upon the principal unpaid. The borrower shall beentitled to a receipt for all  installments as paid, and where the repayment iscomplete to a satisfaction of his note and mortgage. (1925,c. 223, s. 9.)