Page:Federal Reporter, 1st Series, Volume 8.djvu/867

BICH ». TOWN .OP 8ENBCA FALLS. 853 �The question in the case which presents more doubt is whether the plaintifE is entitled to reeover interest on the unpaid instalments of interest. The action is brought upon the bonds, and these provide for the payment of the principal Bum in 30 years, with interest semi- annually, at 7 per cent, par annum, on the first day of January and July in each year, at the office of the Union Trust Company, New York city, on presentation of the proper interest warrant hereto annexed. If the action had been brought upon the interest coupons, it is well-settled the plaintiff would be entitled to interest on them from the time of their maturity. On the other hand, were this an ordinary bond for the payment of the principal at a future time, with interest at specified times before the principal should mature, it is concededly the law of this state that interest could not be recoverable upon the unpaid instalments of interest. �The plaintiflf could not reeover for the unpaid instalment of inter- est without presenting and surrendering the coupons upon the trial, and in legal contemplation they are not severed from the bond until payment. The City v. Lamson, 9 Wall. 477, 485. It would seem, therefore, that a right of action upon the bond necessarily carries with it all the rights of recovery upon the coupons, including that for interest upon non-payment of the coupon at maturity. The bond may be considered as an agreement for the payment of a prin- cipal Bum at a specified date, and for the payment of divers promis- sory notes representing interest at specified dates. As the owner of the bond can transfer the coupons, and the transferee would be enti- tled to interest from the time of their maturity, there seems to be no Sound reason why he should not also be entitled to like interest if he retains the coupons. The oharacter of the obligation is not affeeted by the form of the action adopted by the plaintiff, and he does not obtain the full benefit of bis obligation unless he is allowed interest by way of damages for the defendant's failure to fulfil the obligation. �Judgment is ordered for plaintiff accordingly. ��� �