Massell Realty Co. v. Chamberlin

1. “When a payment is made upon any debt, it shall be applied first to the discharge of any interest due at the time .(italics ours), and the balance, if any, to the reduction of the principal.” Civil Code (1910), § 3433.

2. “When a payment is made by a debtor to a creditor holding several demands against him, the debtor has the right to direct the claim to which it shall be appropriated. If he fails to do so, the creditor has the right to appropriate at his election. (Italics ours.) If neither exercises this privilege, the law will direct the application in such manner as is reasonable and…