THFN REALTY CO., ETC., APPELLANT,
v.
KIRKMAN/CONROY LTD., ETC., ET AL., APPELLEES
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The court affirmed that default interest accrues from the date of the mortgagor's default in paying property taxes, not from the date the mortgagee exercises its acceleration option, based on the mortgage language explicitly stating interest applies 'from and after the date of any such default.'
Default interest under a mortgage accrues from the date of the mortgagor's default, not from the date the mortgagee exercises its acceleration option, when the mortgage language explicitly provides that interest applies 'from and after the date of any such default.'
[1] When a mortgage provision explicitly states that default interest applies 'from and after the date of any such default,' the default rate accrues from the date of the mor…
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Join FLexlaw to unlock all legal intelligence“The indebtedness secured hereby shall bear interest at the highest lawful rate of interest per annum allowed by the law of the State of Florida from and after the date of any such default of Mortgagor.”
The mortgage provision at issue establishing when default interest accrues.
THFN Realty Co. defaulted on a mortgage by failing to pay 1986 property taxes. The mortgage contained an acceleration clause and a provision for inter…
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COWART, Judge.
Appellant, THFN Realty Co., as mortgagor, defaulted on a mortgage by not properly paying the 1986 property taxes. The mortgage provided for acceleration upon default and also provided that:
The indebtedness secured hereby shall bear interest at the highest lawful rate of interest per annum allowed by the law of the State of Florida from and after the date of any such default of Mortgagor. (Emphasis added.)
In a partial summary judgment of foreclosure, the trial court calculated interest at the default rate from the date of the default resulting from failing to pay the 1986 property taxes. The mortgagor appeals, contending that the trial court should have calculated interest at the default rate only from the time the mortgagee exercised its option to accelerate the mortgage, citing Haddock v. Marlin, 458 So. 2d 848 (Fla. 5th DCA 1984) and Bratcher v. Wronkowski, 417 So. 2d 1132 (Fla. 5th DCA 1982), rev. denied, 424 So. 2d 760 (Fla. 1982). This court construed the provision for a default interest rate in Haddock and Bratcher to commence from the date the mortgagee exercised its option to accelerate because of the particular language in the promissory notes in those cases. The language in the mortgage in this case, cited above, differs from the language in the notes in Haddock and Bratcher. The language in the mortgage in this case clearly provides that the higher default rate of interest is to be calculated “from and after the date of any such default” and is not keyed to the date of the mortgagee’s exercise of the option to accelerate.
AFFIRMED.
ORFINGER and GOSHORN, JJ., concur.
Cases With Similar Vibessemantic neighbors from the corpus
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Cited By
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Alphonse Maignan v. Da Silva, 664 So. 2d 13 (Fla. 3d DCA 1995)…PER CURIAM. Affirmed. See THFN Realty Co. v. Kirkman/Conroy Ltd., 546 So. 2d 1158 (Fla. 5th DCA 1989).…
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Stern v. Kafin, 676 So. 2d 458 (Fla. 3d DCA 1996)…PER CURIAM. Affirmed. See Reilly v. Barrera, 620 So. 2d 1116 (Fla. 5th DCA 1993); Breitbart v. Zaucha, 185 So. 2d 496 (Fla. 3d DCA 1966) (penalty interest presumed to be limited to defaulted payments); cf. THFN Realty Co. v. Kirkman/Conroy Ltd., 546 So. 2d 1158 (Fla. 5th DCA 1989) (where the language is clear and unambiguous, the mortgage provisions control the application of the default rate of interest).…
Authorities Cited
- Bratcher v. Wronkowski, 417 So. 2d 1132 (Fla. 5th DCA 1982)
- Haddock v. Marlin, 458 So. 2d 848 (Fla. 5th DCA 1984)