PRESTANAK TIJEKA KAMATA KADA IZNOS KAMATA DOSTIGNE GLAVNICU: ZABRANA ULTRA ALTERUM TANTUM U SVJETLU SUDSKE PRAKSE EUROPSKOG SUDA

The legal rule under which interest ceases to run when the amount of interest reaches the amount of the principal is known as a prohibition of ultra alterum tantum. Such a statutory limit on interest accumulation was previously contained in the 1978 Obligations Act, and was abolished in 1989. In the Republic of Croatia and the Republic of Serbia, current proposals call for re-introduction of the prohibition of ultra alterum tantum in the legal regulation of interest. Whereas the proposed amendment to the Croatian Obligations Act seeks to limit the accumulation of default interest, the Draft of the Civil Code of the Republic of Serbia contains a legal restriction on the accumulation of contractual interest. On the basis of a comparative analysis of the rule on the prohibition of ultra alterum tantum in Austrian law, Slovenian law and the European Union law, the paper examines the eligibility and appropriateness of these proposals for legislative interventions in the regulation of interest in Croatian and Serbian law.