404
7.2.2 Interest^135
The interest rate was fixed by LE 18A at 20 percent for silver and
33 1/3 percent for barley.^136 The same rates are frequent in private
documents and perhaps reflected a customary or fair rate. Often the
rate is not stated in the document, or reference is made to “true
interest” (má“.gi.na). There was also an interest “of Shamash” on
silver, which was 20 percent. Nonetheless, where stated, there are
wide variations in the rates charged.7.2.3 Repayment^137
7.2.3.1 The contract could set a fixed date or reference point, for
example, “at harvest time” or “at the threshing floor” (ana ma“kanim,
which meant at the time of threshing) or on completion of a trad-
ing journey, or require repayment on notice (ana itti“u) or on demand.
Social loans made by a temple were repayable when the borrower
was able (ina bal†u u “almu).^138 The usual repayment clause states that
the borrower shall pay “the silver and its interest” on the due date,
indicating that interest was payable only at the time of repayment
of the loan. Sometimes interest was payable only after default (e.g.,
ARM 8 50).
According to LH 48, if a farmer’s crop was destroyed by storm,
flood, or drought, he could be excused payment of interest for that
year.^1397.2.3.2 The contract could stipulate that a loan of silver, for exam-
ple, be repaid with a different commodity “at the going rate” of
exchange (ma¢ìr(at)illaku) at maturation. Fluctuations in the rate could
be used oppressively by lenders: LE 19–21 appear to be directed
against such practices, but the provisions are obscure.^140 LH “u”
allows a debtor who cannot repay in silver to pay in grain, refer-
ring to a royal order (ßimdat “arrim) on the conversion rate. LE 1–2
contain a list of fixed equivalencies between silver and grain respec-(^135) Skaist, Loan Contract.. ., 98–144.
(^136) Cf. LH t (partly broken), which has the same for silver.
(^137) Skaist, Loan Contract.. ., 148–201.
(^138) Harris, “Temple Loans...”
(^139) See Driver and Miles, Babylonian Laws.. ., 144–45.
(^140) Interpretations reviewed by Yaron, Eshnunna.. ., 235–46.
WESTBROOK_f10–360-430 8/27/03 12:26 PM Page 404