Interest. The charge for the use of money ; also the money so paid is designated as interest. The
amount paid in regular instalments to the holders of bonds is designated as interest, while the
amount paid in regular instalments to the holders of stock is designated as dividend.  On time
loans interest is generally calculated on the basis of 30 days in a month and 360 days in a year.
On call loans and on demand or sight paper interest is calculated on the basis of 365 days in a
year. (On notes interest in New York state is calculated at 6 per cent in the absence of a special
agreement). Interest on bonds is calculated on the basis of 30 days in a month and 360 days in a
year.
In New York state the requirement that not more than 6 per cent interest shall be charged on
money loaned does not apply to call loans. The law says : "Upon advances of money repayable on
demand to an amount not less than five thousand dollars made upon warehouse receipts, bills of
lading, certificates of stock, certificates of deposit, bills of exchange, bonds or other negotiable
instruments, pledged as collateral security for such repayment, any bank or individual banker may
receive or contract to receive and collect as compensation for making such advances any sum to
be agreed upon in writing by the parties to such transaction."