land; and afterwards the bill is dishonored, the damages in such a case will be computed according to the lex loci contractus respectively, as between the several parties. Now the damages in these different states vary materially. In Massachusetts it is ten per cent. ; in New York, twenty per cent., and in Maryland, fifteen per cent.^ The drawer of the bill is liable only according to the law of the place where it is made, and the successive endorsers accordingly to the law of the place of their respective endorse- ments ; consequently the endorsers in this case are not only unequally liable as between themselves, but are both liable to a higher rate of damages than- they can recover from the drawer.
But in contracts for the payment of money at a given time, in a foreign territory, if the rate of in- terest be not stipulated, and there should be default in payment, the law of the place of payment regu- lates the allowance of interest, for the default arises there.^ If, however, the rate of interest be specified in the contract, and it be according to the law of the place where the contract was made, though that rate be higher than that allowed by the law of the place of performance, the specified rate of interest will nevertheless be allowed by the courts of justice in the place of performance, for that is part of the sub- stance of the contract.^ Thus the place where the ' 3 Kent. Com., p. 116. ° Cooper V. The Earl of Wnldegrave, 2 Beavan, 282. ' Depart, v. Humphreys, 20 Martin Louis. K., 1. In this case the English and American authorities, and the opinions of the Conti- 112 HISTORY OF USUET.
contract is made is to determine the rate of interest when interest is specifically given, even though the loan be secured by mortgage on lands