LEGAL AND ECONOMIC PERSPECTIVES ON THE LEGAL PENALTY INTEREST

Rodica Diana Apan and Simona Sabou
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Rodica Diana Apan: Faculty of Law of Cluj-Napoca, Christian University “Dimitrie Cantemir“ of BUcharest, Romania
Simona Sabou: Faculty of Science, North University Center of Baia Mare, Technical University of Cluj-Napoca, Romania

CrossCultural Management Journal, 2014, issue 1, 7-20

Abstract: The legal evaluation of the penalty interest, meaning the ex lege determination of its level is applicable only in the case of non-fulfillment of a monetary payment obligation. The applicability of the system of legal evaluation of the interest is generally determined by the absence of a document that ascertains the agreement of the parties, such as a contract, through which the parties, following this agreement, evaluate the prejudice caused by the non-fulfillment of a monetary payment obligation, before the prejudice has occurred. The legal evaluation of the penalty interest, as a component of the regulation in the field of legal interest has the purpose to ensure creditor’s protection. Regardless of the prejudice caused to the creditor, the legal penalty interest shall be determined by relating it to a variable benchmark that is the level of the reference interest rate of the National Bank of Romania, which is the monetary policy interest rate of the National Bank of Romania.

Keywords: Putting in default; Legal interest; Penalty interest; Reference interest rate of the National Bank of Romania (search for similar items in EconPapers)
JEL-codes: E43 G21 K20 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:cmj:journl:y:2014:i:5:apan&sabou

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