Question 620. - "Call loans, New York Market." What is the meaning of the expression, "Call loans at 3 per cent.?" Does it mean that the money must be paid whenever demand is made? Is the interest calculated at 3 per cent, per annum for the actual number of days the loan is outstanding, or does it mean that the borrower must pay 3 per cent, of the principal regardless of the time the loan was out? Can a borrower in such a transaction by paying an exorbitant rate obtain as of right an extension?

Answer. - The expression means that the rate of interest being charged on loans repayable "at call," i.e., on demand, is 3 per cent, per annum. The money must be paid when demand is made at the option of the lender. The interest is calculated for the number of days during which the loan has been current. A borrower "at call" cannot claim any extension as of right; if he could the loan would lose its distinctive character.