Karam v. Ballou

BLEIL, Justice.

This appeal concerns the extent that the terms of a promissory note allow prepayment without penalty. We determine that the note provides a full prepayment right and reverse the trial court’s judgment.

In November, 1979, William Ballou purchased five tracts of Lamar County land totaling about 1200 acres from Morris and Martha Jo Cass. In part payment he gave them five noninterest bearing notes which are identical in language except for the principal amounts. Each note provides that it is:

Payable in 180 equal monthly installments of $_ [different amount on each note] each, the…