Interest runs from default unless otherwise agreed; when demand necessary

In the absence of an agreement to the contrary, interest shall not run until default; hence, where money can be recovered because of mistake or other like reasons, no interest shall run until after demand and refusal to refund. History. Civil Code 1895, § 2881; Civil Code 1910, § 3431; Code 1933, § 57-107. History of Code section. This Code section is derived from the decision in Georgia R.R. & Banking Co. v. Smith, 83 Ga. 626, 10 S.E. 235 (1889).