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Legal Nature of Charging Interest Payable under Loan Agreement

Summary/Abstract: The paper aims at establishing the legal nature of charging interest payable under loan agreement. In order to fulfil this aim, the term “interest payable” has been analyzed. The characteristics of operational remedial actions and civil legal liability have been considered. Based on the obtained results, it has been concluded that charging interest payable is a measure of civil legal liability. The results of the study are very important for both legal science and practice, because the following grounds are needed for civil legal liability: a) loss; b) wrongfulness of conduct by the offender; c) cause-and-effect relationship between this conduct and subsequent loss; d) guilt of the offender. Furthermore, other circumstances must be taken into account, such as: a) reducing liability in case of mutual guilt of the obligor and creditor; b) cases of limited liability.

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