IDEAS home Printed from https://ideas.repec.org/a/cmj/journl/y2014i5apan&sabou.html
   My bibliography  Save this article

Legal And Economic Perspectives On The Legal Penalty Interest

Author

Listed:
  • 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)

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.

Suggested Citation

  • Rodica Diana APAN & Simona SABOU, 2014. "Legal And Economic Perspectives On The Legal Penalty Interest," CrossCultural Management Journal, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 1, pages 7-20, May.
    • Handle: RePEc:cmj:journl:y:2014:i:5:apan&sabou
    as

    Download full text from publisher

    File URL: http://seaopenresearch.eu/Journals/articles/CMJ2014_I1_1.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Putting in default; Legal interest; Penalty interest; Reference interest rate of the National Bank of Romania;
    All these keywords.

    JEL classification:

    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • K20 - Law and Economics - - Regulation and Business Law - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cmj:journl:y:2014:i:5:apan&sabou. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Serghie Dan (email available below). General contact details of provider: https://seaopenresearch.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.