Are annual, unpaid interest payments compounded with principal if promissory note language excludes compounding clause?
Interest rates and payments are specified in a promissory note secured by a deed of trust. However, no interest or principal payments have been made and the property is about to be sold. The promissory note lacks a clause that specifies that unpaid interest shall accumulate to principal and compound year-by-year, so need to know if unpaid interest due should be compounded annually or not.
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