How to Calculate the Interest on Debt for the Period of Deferred Performance and Other Issues in the Enforcement Work

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  • Document NumberInterpretation No. 6 [2009] of the Supreme People's Court
  • Area of Law Contract Civil Litigation
  • Level of Authority Judicial Interpretation
  • Date issued05-11-2009
  • Effective Date05-18-2009
  • Issuing Authority Supreme People's Court
  • Status Effective

Announcement of the Supreme People's Court of the People's Republic of China
The Official Reply of the Supreme People's Court on How to Calculate the Interest on Debt for the Period of Deferred Performance and Other Issues in the Enforcement Work, as adopted at the 1465th meeting of the Judicial Committee of the Supreme People's Court on March 30, 2009, is hereby issued, and shall come into force on May 18, 2009.
May 11, 2009
Official Reply of the Supreme People's Court on How to Calculate the Interest on Debts for the Period of Deferred Performance and Other Issues in the Enforcement Work
(Interpretation No. 6 [2009] of the Supreme People's Court)
The Higher People's Court of Sichuan Province:
Your Request for Instructions on Several Issues concerning Application of Law in the Enforcement Work (No. 390 [2007] of the Higher People's Court of Sichuan Province) has been received. Upon deliberation, the following official reply is hereby made:
I. A people's court shall calculate the “interest on debts for the period of deferred performance” in accordance with Article 229 of the Civil Procedure Law of the People's Republic of China at the benchmark lending rate over the same period as published by the People's Bank of China.
II. Where the funds available for enforcement are insufficient for repayment of total debts, the pecuniary debts determined in a legal instrument shall be repaid and the interest on such debts for the period of deferred performance shall be paid pro rata under the concurrent principle, except as otherwise agreed on by the parties regarding the order of repayment through reconciliation during enforcement.
Annex:
Specific calculation methods:
1. Funds available for enforcement = repaid pecuniary debts determined in a legal instrument + paid interest on debts for the period of deferred performance.
2. Paid interest on debts for the period of delayed performance = repaid pecuniary debts determined in a legal instrument × benchmark lending rate over the same period × 2 × period of deferred performance.