Passive Debt - Definition - Law Dictionary Home Dictionary Definition passive-debt

Definition :

Passive debt, a debt upon which, by or without agreement between the debtor and creditor, no interest is payable, as distinguished from active debt, i.e., a debt upon which interest is payable. In this sense, the term 'active' and 'passive' were long applied to certain debts due from the Spanish Government Distinguish from 'Actif' (assets) to 'Passif' (liabilities) (Fr. law.)