Again a note may go into details and specify that "the interest shall be ten per cent, payable semi-annually," provided always that the rate shall not be higher than the legal interest of the state.
Excessive interest is known as "usury." It invalidates all the interest, and in some places the principal is forfeited.
When the holder of an interest note receives interest payment he must record the date and sum on the back of the note.
PROTESTS
If a note comes due on Sunday or on a legal holiday, payment must be made on the following day.
Holidays are appointed by the separate states.
The United States recognizes no day as a holiday, except Sunday, and that is acknowledged through custom.
It is customary for banks to notify makers of notes held by them a few days before time set for payment; but this is not required by law.
If a note lies unpaid in bank the day set for payment, as soon as the office closes for regular business the note is protested.
The protest is made before a notary public; he is usually an employee of the bank.