Unless otherwise agreed by traders, the lender and borrower may not agree in advance that interest owed over a period less than a year will be added to capital and itself produce interest.
Civil Code
2015 English source edition · Current applicability not established.
This is the 2015 English-language edition attributed in its front matter to the Ministry of Justice. Eri Atlas has not independently verified the translation, later changes, or whether the text is currently in force. Nine passages are incomplete in the available scan and are identified where they occur.
Article 1940
Compound Interest · Preserved transcription; page attribution imported from the source collection. Verify against the original.
Nothing shall affect the rules for the calculation of compound interest on current accounts.