Anatocism
Definition
A financial and legal practice consisting of calculating and charging interest on already accumulated and overdue interest, modernly known as capitalization of interest or compound interest. From a legal standpoint, anatocism is strictly regulated, restricted, or even prohibited in certain systems of civil and commercial law to prevent the abusive over-indebtedness of debtors through the exponential multiplication of amounts owed.
Bilingual Equivalents
- Anatocism
- Compound interest
Grammatical & Source Details
| Inflection Type | Neuter noun, typically preserved in singular form within legal and financial literature. |
| Formation | Derived from classical Greek roots denoting the continuous reinvestment or calculation of monetary yield. |
| Spelling / Pronunciation | [ˌæn.ə.ˈtoʊ.sɪ.zm̩] |
| Source | Black's Law Dictionary and Financial Markets Terminology Manual |
Contextual Usage Examples
RO: Noul Cod Civil interzice în mod expres acest anatocism în contractele de credit, cu excepția unor clauze stipulate special.
EN: The new Civil Code expressly prohibits this anatocism in credit agreements, except for certain specially stipulated clauses.
RO: Avocatul a demonstrat în instanță că banca a aplicat un anatocism ascuns, majorând ilegal datoria clientului său.
EN: The lawyer demonstrated in court that the bank applied a hidden anatocism, illegally increasing his client's debt.
RO: Deși aduce câștiguri mari investitorilor pe termen lung, un anatocism necontrolat poate ruina micii împrumutați.
EN: Although it brings high gains to long-term investors, uncontrolled anatocism can ruin small borrowers.
Idioms & Phrases
Pact de anatocism / Anatocism agreement
RO: Convenție prin care părțile contractante stabilesc de comun acord ca dobânzile neplătite să producă la rândul lor dobândă.
EN: An agreement whereby the contracting parties agree that unpaid interest will in turn produce interest.
Interzicerea anatocismului / Prohibition of anatocism
RO: Principiu juridic de protecție a consumatorilor care anulează clauzele contractuale ce permit cumulul dobânzilor.
EN: A legal principle for consumer protection that voids contractual clauses allowing the accumulation of interest.
Anatocism comercial / Commercial anatocism
RO: Excepție legală care permite capitalizarea dobânzilor în cadrul anumitor tranzacții sau conturi curente bancare.
EN: A legal exception allowing the capitalization of interest within certain commercial transactions or bank current accounts.
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