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Law No. 994 Of 31 March 1931 Against Usury

Original Language Title:  LEGE nr. 994 din 31 martie 1931 contra cametei

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LEGE no. 994 994 of 31 March 1931 against cameta
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 77 77 of 2 April 1931



CAROL II, Through the grace of God and the national will, King of Romania, To all present and future, health: The legislative assemblies voted and adopted, and We sanction what follows: + Article 1 The annual legal interest is fixed at: 1% in civil affairs and 2% in commercial business, counted over the account of the National Bank of Romania. + Article 2 The annual conventional interest rate cannot exceed 6% above the account of the Romanian National Bank. The claim of conventional interest can only be capitalized on in the case when it is stipulated by the written act. When the debtor is held to pay a interest without it being fixed by act, he will pay the legal interest. + Article 3 By interest it is understood not only the amounts payable in money, but also any other benefits under any title or name, as equivalent to the use of capital, to which the debtor undertakes for the use of the capital counted in cash. + Article 4 If interest is stipulated that exceed the maximum shown by art. 2, for surplus the bond is void of law. The provisions of interest rates higher than the fixed maximum will not be able to be authenticated. The acts encompassing the provisions of interest superior to the maximum provided by art. 2, will be intabulate, pre-noted or entered, with the addition that the interest rates are registered to the maximum shown. The contracts for sale with ransom and antique pact, which will be concluded between the parties, after the date of promulgation of the present law, are void of law, and the provisions of art. 1371-1387 including civil code art. 1697 1697-1703 including the civil code and corresponding articles of the civil codes in force in the united territories-shall be repealed. + Article 5 The anticipated interest payment can only take place for a maximum of 6 months. + Article 6 Interest rates of any kind are prescribed if they have not been required or followed for 3 years. + Article 7 The provisions of this law shall apply with retroactive effect: a) Interest rates of any kind provided in any existing written acts for the time flowing from the promulgation of this law; b) Interest rates of any kind not actually collected, deriving from any securities or conventions with prior chargeability promulgation of this law, which shall be reduced by full right by the effect of this law to 18% per year, starting from the date of 7 Fevruarie 1929 (monetary stabilization law). The interest established by final court decisions shall be exempted. + Article 8 The creditor who will receive or stipulate by the very act of loan, by separate act, by act disguised or in any other way, a conventional interest superior to that fixed by this law, shall be punished with imprisonment from 2 months to one year and with fine from 5,000-20,000 lei. In case of mitigating circumstances, the court will not be able to reduce the sentence under 5,000 lei fine. The same punishment will apply to that which with science serves as a mediator to the commission of the offence. + Article 9 If the crime provided by art. 8 was committed by a professional borrower or a person who was previously convicted of the same crime, is punishable by imprisonment from 6 months to 3 years and with a fine of 20,000 lei up to 100,000 lei, attracting after himself and losing political rights. In case of mitigating circumstances, the court will not be able to go down in application of the sentence below 20,000 lei, the minimum of the fine. + Article 10 When the crime provided by art. 8 and 9 was committed on behalf of a company, the punishment will apply to those who approved the conclusion of the business. If the offence was committed by a prosecutor or a trustee, the punishment will be applied both to him and to those on whose behalf and with the knowledge of which the offence was committed. + Article 11 Public action on the basis of this law is set in motion only after the request of the injured party, which will be able to formulate by the same action its claim for excess interest. The criminal complaint of the debtor does not suspend in this matter the course of any civil or commercial action. The civil or commercial action of the debtor for the reduction of the interest stipulated illegally or for the restitution of the illegally charged, will not be related to the creditor's action, but they will be judged separately. Any means of probation are admissible to prove the amount of interest already paid, or those that were stipulated to be paid. The court competent to judge the criminal action introduced on the basis of this law, is the judge of the place where the crime was committed. Any act of procedure regarding the adjudication of the criminal complaint introduced on the basis of this law, is exempt from stamp. The final ruling of the nation will be published in a newspaper spread at the expense of the convicted. + Article 12 All provisions contrary to the laws in force shall be repealed. This law was voted by the Assembly of Deputies at the meeting on March 12, 1931 and was adopted by a majority of one hundred and fifty-four votes, against one. President, ST. CICIO POP ((L.S.A. D) Secretary, Nicolae S. Rusanescu This law was voted on by the Senate at the meeting of March 27, 1931 and was adopted by a majority of one hundred nine votes, against seventeen. President, PROFESSOR TRAIAN BRATU ((L. S. S.) Secretary, V. Motogna We promulgate this law and order that it be invested with the seal of the State and published in the Official Gazette. ((L. S. St.) CAROL Finance Minister, Mihai Popovici Justice Minister Dr. Voicu Nitescu ------------