Top Story - Court Shows Interest in Interest Rates
Date:
May 1 2004
The Ontario Court of Appeal has rejected an antiquated approach to determining the post-maturity interest rate on a promissory note when the note is silent on the issue. Prior to the Pizzey case, courts would look to the Bills of Exchange Act and the Interest Act to determine what interest rate would apply to a note if it was silent on the matter. In the Pizzey case, the court said that absent exceptional circumstances, where the note is silent on the post-maturity rate of interest payable, the appropriate post-maturity rate is the rate set prior to maturity.
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