Rodgers v. Rainier National Bank

Brachtenbach, J. —

Debtors on a promissory note defaulted and the lender accelerated the maturity date pursuant to a default-acceleration provision. As a requirement for the debtor to avoid foreclosure sale, the lender demanded unaccrued interest for the period during which prepayment was prohibited, and also demanded a prepayment penalty which would have been due had prepayment occurred subsequent to that prohibition period. The question presented is whether the debtors can recover the unac-crued interest and the prepayment penalty which they paid under protest. The trial court answered in…