Interim rate
Interim interest may arise if a debtor settles a liability before the due date . Since the creditors prematurely attained the use of capital in this case, it can generate for the interim period interest, why the early payable debtor may be entitled to bring these interim interest from the claim amount deducted.
German law regulates the problem of interim interest initially in Section 272 of the German Civil Code (BGB), and also in several special legal norms. Section 272 of the German Civil Code only stipulates that the debtor of a non-interest-bearing claim is not entitled to deduct interim interest in the event that payment is made before the due date. Conversely , it follows from this that, in the case of an interest-bearing claim, the deduction of interim interest is permissible, of course only if the debtor is at all entitled to an early performance.
The law recognizes several exceptions to the principle that interim interest is not deducted, for example when the obligee can exceptionally request an early payment or is responsible for this, for example when the security effect of a mortgage is at risk due to the deterioration of the property (Section 1133 BGB) or after a breach of duty by the pledgee (Section 1217 (2) BGB).
