Interest and Linkage Law, 5721-1961

In this Law –

"judicial authority" – a court, tribunal or other authority competent under law to award payment to a party, or to determine an amount payable to a party, including an arbitrator and also the Execution Registrar when competent under law to award or determine a sum of money;

"default charges" – a payment added to a sum of money that is to be paid, on account of default in its payment, in accordance with the provisions of sections 5 and 5a;

"decision" – a judgment, a partial judgment and any other decision;

"date of filing of the claim" – including the date on which the party first approached the judicial authority to adjudicate the matter.

"index" – the Consumer Price Index published from time to time by the Central Bureau of Statistics;

"linkage differentials" – the updating of an amount by multiplying it by the new index and dividing by the base index; for the purposes of this definition –

"the new index" – the index known at the time of the update;

"the base index" – the index known as at the date of the previous update, and for the purposes of the first update – the index known as at the date of the first update;

"maturity date" – the last date fixed for payment of a sum of money, and if no such date has been fixed – thirty days from the date of the decision concerning the obligation to pay the said amount;

"adjudicated sum" – a sum of money awarded by a judicial authority to a party, excluding costs and attorney's fees, and without the addition of interest or linkage differentials;

"updated principal" – any of the following: an adjudicated sum, costs, attorney's fees or a linked principal, less any amount paid therefrom, to which shekel interest or linked interest has been added pursuant to section 2 or 5(1), as the case may be, if added, all as at a particular date;

"linked principal" – an adjudicated sum, costs or attorney's fees to which linkage differentials have been added;

"linkage differentials and interest" – (deleted)

"linked interest" and "shekel interest" – a payment added to a sum of money that is to be paid, the annual rate of which is determined pursuant to section 5c.

The following shall be added to an updated principal for the period from the maturity date until the date of actual payment (in this Law – the period of default in payment):

The provisions of this Law shall also apply to the award of compensation pursuant to section 77 of the Penal Law, 5737-1977, section 35 of the Military Justice Law, 5715-1955, section 11 of the Probation Ordinance [New Version], 5729-1969, section 26(8) of the Youth Law (Adjudication, Punishment and Modes of Treatment), 5731-1971, section 38 of the Criminal Procedure Law (Enforcement Powers – Arrests), 5756-1996, and section 39d of the Commodities and Services Supervision Law, 5718-1957, and for the purposes of the interest period, the date of filing of the indictment shall be deemed the date of filing of the claim.

A party who has paid to his adversary the amount for which he may be held liable, in whole or in part, subject to the decision of the judicial authority, shall not have interest imposed pursuant to this Law on the amount so paid in respect of the period following the payment; the same shall apply where that party offered that amount to his adversary and the latter refused to accept it.

A payment or offer of payment as referred to in section 9, and likewise the acceptance of such payment, shall not prejudice the rights and contentions of the parties in the course of the proceedings.

This Law shall apply to the State.

Section 112 of the Ottoman Civil Procedure Code of the 2nd of Rajab 1296 (21 June 1879) – is repealed; section 106 of that Code shall not apply to the award of interest pursuant to this Law.