21Interest to be payable in respect of postponed payments

21 Interest to be payable in respect of postponed payments

(1) Subject to the next succeeding subsection, where any payment of principal money or purchase money is postponed under this Division, interest is payable on that money until payment of the money is made, at the rate agreed upon by the parties before the interest falls due, or at the rate ascertained in accordance with the regulations, whichever is the lower rate. (2) If the rate of interest payable under any mortgage or agreement is thereby fixed by reference to rates current in the case of some specified class of transactions at the times when the sums of interest respectively fall due or are paid (as the case may be), the rate payable by virtue of this section is, at the option of the mortgagee or vendor, the rate as so fixed or the rate as fixed by this section, but so that the rate does not in any case exceed the rate ascertained in accordance with the regulations. (3) Interest payable by virtue of this section is payable at the close of the same intervals of time as are provided by the mortgage or agreement with respect to the interest payable under the mortgage or agreement, or, if no provision is so made, then quarterly.