Donahue

Plaintiffs seek review of a judgment granting them the right to prepay an all-inclusive note and deed of trust held by defendants, but granting defendants the right to charge plaintiffs a prepayment penalty and awarding defendants, among other things, both the interest lost by defendants due to the failure of plaintiffs to make required payments on the all-inclusive note and the nonprincipal portion of advances made by defendants on the underlying notes.

On appeal plaintiffs contend that although the trial court was correct in granting plaintiffs the right to prepay the all-inclusive note, it erred in assessing a prepayment penalty because none was agreed to contractually. Because plaintiffs are correct on these points, the trial court must consider on remand the effect of defendants’ failure to make a proper demand when plaintiffs made their offer to pay off defendants’ equity in September 1980, and recompute plaintiffs’ liability for advances and interest accordingly.

Plaintiffs also contend that even if they are found liable for both interest and advances, the trial court erred by computing interest lost and advances made in such a way as to award defendants a double…