Kuwait Court of Cassation principle number 3385

Banking operations. Considered commercial acts, whether from the bank’s side or from its customers’ side. Art. 5 of the Commercial Code. - 568 - Commercial. Its import: loans concluded by banks are commercial acts by their nature, whatever the borrower’s capacity or the purpose of the loan. - Statutory interest runs on the balance debt from the date the current account is closed, unless the parties agree otherwise. - Agreement on the interest rate and the debtor’s delay in paying the debt. Its effect. Calculation of default interest on the basis of the agreed rate. Art. 2 of the Commercial Code. An example concerning entitlement to default interest on a loan.