STATUTORY INTEREST UNDER THE LAWS OF THE DUTCH CARIBBEAN
Notice of default not always required
According to article 6:119 Netherlands Antilles Civil Code, whenever a debtor is in default, he must pay compensation to the creditor, this compensation consists of the statutory interest. The statutory interest is calculated and accumulated to the amount due every year. In the case that a higher interest than the statutory interest was agreed between the parties, this higher interest will prevail during the default.
The law prescribes when the default starts. In many cases it starts after the debtor has received a notice of default. However, there are exceptions to this rule. One of these exceptions is based on case law in which according to the Supreme Court the default can also start after the debtor has made a statement in which he states that he will not be able to fulfill his obligations. Also no notice of default is required, if a specific term which has been set for payment lapses without the debtor having paid his debt (art. 6:83 Netherlands Antilles Civil Code).
Karel Frielink
Curacao-based Attorney (lawyer) / Partner
