20-4-9. Application of performance in absence of selection by parties.
102 words·~1 min read·
/sd/title-20/chapter-20-4/20-4-9A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
If neither party makes application pursuant to § 20-4-7 or § 20-4-8 within a reasonable time after performance, the performance must be applied to the extinction of obligations in the following order; and if there be more than one obligation of a particular class, to the extinction of all in that class, ratably:
(1)Of interest due at the time of the performance;
(2)Of principal due at that time;
(3)Of the obligation earliest in date of maturity;
(4)Of an obligation not secured by a lien or collateral undertaking;
(5)Of an obligation secured by a lien or collateral undertaking.