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Deferral

What is a deferral?

A deferral refers to a subsequent agreement to postpone the due date (full deferral). Until the new due date, the payment cannot be demanded or made. No default interest is payable, and the limitation period does not begin to run. If the creditor merely defers the assertion of the claim, but not the actual due date, this is referred to as a ‘pure deferral’. In this case, the debtor falls into default once the due date has passed and is therefore also liable to pay default interest. However, as the due date itself is not postponed, the debtor may still make a payment that discharges the debt at any time in the case of a pure deferral.

 

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