Interest on debt
Defined in 1 dictionary — Case Law
Definitions from Case Law
From 233 U.S. 261 - American Iron Steel Manufacturing Company v. Seaboard Air Line Railway · 1914Most cited · 364 citing opinions
As a general rule, after property of an insolvent is in custodia legis interest thereafter accruing is not allowed on debts payable out of the fund realized by a sale of the property. But that is not because the claims had lost their interest-bearing quality during that period, but is a necessary and enforced rule of distribution, due to the fact that in case of receiverships the assets are generally insufficient to pay debts in full.