Debt
In commerce, payment in kind was still common, though contracts usually stipulated cash, naming the currency expected—that of Babylon, Larsa, Assyria, Carchemish, etc. The Code stipulated, however, that a debtor must be allowed to pay in produce according to a statutory scale. If a debtor had neither money nor crops, the creditor must not refuse goods.
Debt was secured on the debtor's own person. Distraint on a debtor's grain was forbidden by the Code; not only must the creditor return it, but his illegal action forfeited his claim altogether. An unwarranted seizure for debt was fined, as was the distraint of a working ox.
If a debtor were seized for debt, he could nominate as mancipium, or hostage to work off the debt, his wife, child, or slave. The creditor could only hold a wife or child three years as mancipium. If the mancipium died a natural death while in the creditor's possession, no claim could lie against the latter; but if he was the cause of death by cruelty, he had to give son for son, or pay for a slave. He could sell a slave-hostage, but not a slave-girl who had borne her master children; she had to be redeemed by her owner.
The debtor could also pledge his property and in contracts, often pledged a field, house or crop. The Code stipulated, however, that the debtor must take the crop himself and pay the creditor from its yield. If the crop failed, payment was deferred, and no interest could be charged for that year. If the debtor did not cultivate the field himself, he had to pay for its cultivation, but if the field was already cultivated, he must harvest it himself and pay his debt from the crop. If the cultivator did not get a crop, this would not cancel his contract.
Pledges were often made where the intrinsic value of the article was equivalent to the amount of the debt; but antichretic pledge was more common, where the profit of the pledge was a set-off against the interest of the debt. The whole property of a debtor might be pledged as collateral for payment of a debt, without any of it passing through the hands of the creditor. Personal guarantees were often given in Babylon that the debtor would repay, or the guarantor become liable himself.
Read more about this topic: Babylonian Law
Famous quotes containing the word debt:
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—Calvin Coolidge (1872–1933)
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—Ralph Waldo Emerson (1803–1882)
“It is a well-settled principle of the international code that where one nation owes another a liquidated debt which it refuses or neglects to pay the aggrieved party may seize on the property belonging to the other, its citizens or subjects, sufficient to pay the debt without giving just cause of war.”
—Andrew Jackson (1767–1845)