Sec 931

When a payment is made, without designation, it will be applied to a debt which is due, in preference to one not yet matured.1 A debt absolutely due will also be paid in preference to a debt due contin-gently.2

Sec 932

The creditor is entitled to reserve his election until it is necessary for him to render an account to the debtor, or until he is otherwise called upon to report his action.3 Whether and when an election takes place, is to be inferred, in absence of direct statement by him, from all the circumstances of the case.4 He is not precluded by a mere private entry on his books, not communicated to the debtor, from appropriating as he thinks best.1 So far as concerns third parties, he must make the election in a reasonable time, but so far as concerns the debtor he may hold back the election until called upon by the debtor to act.2 But when once the application is communicated to the debtor, it cannot be recalled.3 On the other hand, a debtor who receives without objection an account current from his creditor appropriating payments to less onerous debts ratifies by his silence the appropriation so made.4 - The debtor's right of designation cannot be defeated by the creditor appropriating the money before the debtor has had the opportunity of exercising his discretion.5

Debts overdue preferred.

Creditor's election continues until communicated.

Ramsay V. Warner, 97 Mass. 8. In Ramsay V. Warner, 97 Mass. 13, 14, Hoar, J., said: " The debtor is not presumed to have intended to renew a promise which is no longer legally binding upon him, although he has put it into his creditor's power to satisfy pro tanto a claim upon which he has lost his legal remedy. But when there are several ascertained and admitted debts, none of which are barred by the statute, and a payment is made without an application of it by the debtor, we think a different rule applies, and that the payment, when applied by the creditor, has all the effect upon the debt to which it is applied that it would have if it had been made by the debtor expressly on account of it. This distinction between debts barred by the statute at the time when the payment is made, and those not then barred, was expressly recognized in Pond V. Williams, 1 Gray, 630. See Nash V. Hodgson, 6 ' De G. M. & G. 474; Ayer V. Haskins 19 Vt. 26; Bancroft V. Dumas, 21 V 456; Armistead V. Brooks, 18 Ark. 521 Burr V. Burr, 36 Penn. St. 284. - The debtor must be held to intend the full effect of a payment upon whatever debt the creditor may elect to apply it."

1 Benj. on Sales, 3d Am. ed. sec 747, note n'; McDowell V. Blackstone Canal, 5 Mason, 11; Caldwell v, Went-worth, 14 N. H. 431; Baker V. Stack-poole, 9 Cow. 420; Stone V. Seymour, 15 Wend. 19; Seymour V. Sexton, 10 Watts, 255; Law V. Sutherland, 5 Grat. 357; Bacon V. Brown, 1 Bibb, 334; Bobe V. Stickney, 36 Ala. 482; see Hunter V. Osterhoudt, 11 Barb. 33.

2 Portland Bank V. Brown, 22 Me. 295; Niagara Bk. V. Rosevelt, 9 Cow. 409.

3 Simson V. Ingham, 2 B. & C. 65; 3 D. & R. 249; Seymour V. Marvin, 11 Barb. 80; Dorsey V. Wayman, 6 Gill, 59; cited Benj. on Sales, 3 Am. ed. sec 749; and see Emery V. Tichout, 13 Vt. 15; Stamford Bk. V. Benedict, 15 Conn. 438; Smith V. Lloyd, 11 Leigh, 517; Heilbron V. Bissell, 1 Bailey Eq. 435.

4 Shaw V. Picton, 4 B. & C. 715; S. C, 7 D. & R. 201; Frazer V. Bunn, 8 C. & P. 704; Williams V. Griffith, 5 M. & W. 300; Starrett V. Barber, 20 Me. 457; Seymour V. Van Slyck, 8 Wend. 403; Allen V. Culver, 3 Denio, 284; Heilbron V. Bissell, 1 Bailey Eq. 430; Brady V. Hill, 1 Mo. 315.