Simon v. New Hampshire Savings Bank

I cannot accept the literal construction of this note and mortgage urged by the bank and adopted by the court.

The note and mortgage which must be read together (RSA 382-A:3-119) clearly contain provisions that are inconsistent with demand instruments. These inconsistencies, however, can easily be resolved by construing the instruments as installment obligations payable on demand only in the event of default. True, the note states it is “payable on demand.” A note payable on demand is due and payable upon execution, and the bank could maintain an action against a homeowner on the same day the…