Kadi Sink

Senior Associate

Estonia

+372 5656 7624

Kadi Sink is a senior associate specialising in banking and finance and capital markets law.

Kadi’s previous experience includes advising both local and international clients (including banks, other financial institutions and listed companies) on a wide range of regulatory and financial services related matters, including communications with the supervisory authority. She has also assisted clients in carrying out both public offerings and private placements of securities and major mergers and acquisitions projects.

Before joining Ellex in Estonia, Kadi practised in the banking and finance and insurance team of the law firm Sorainen. She has also worked as an in-house legal counsel to the corporate banking department at Swedbank, dealing mainly with financial transactions.

Kadi holds an MA degree in law from the University of Tartu. In addition, she has studied as an exchange student at the University of Ghent and attended the German and EU law summer program of Ludwig Maximilians University of Munich.

2014

University of Tartu

Master of Laws

2017

Estonian Bar Association

2015

Juridica, 2015 /5, Prohibition on the Calculating of Fines for Delay on Interest and Fines for Delay, Its Developments in Case Law and Legislative Drafting

Charging a reasonable fee for lending out money is generally considered a common business practice. Subsection 397 (1) of the Law of Obligations Act (LOA) also states interest shall be paid on loans granted in economic or professional activities. Unlike rent and commercial lease payments or the price of goods to be paid under a sales agreement, different restrictions have applied to the fee on loans throughout history, be it a complete prohibition on adding a fee, a maximum limit to such a fee, or a prohibition on compound interest. Such restrictions also include the prohibition established in subsection 113 (6) of the LOA stating that a penalty for late payment shall not be required for a delay in the payment of interest. The article addresses the main issues regarding this prohibition. The first and the most important starting point is the issue of whether the prohibition to require a fine for delay should also extend to requests for default interest and fines for delay that have become due, or should it only extend to so-called prospective agreements. Secondly, is compound interest, i.e. retrospectively concluded agreements on adding the interest accumulated before the interest becomes due to the main part, and then requesting interest on the total sum received, an acceptable practice or should the possibilities of using compound interest also be restricted. Thirdly, in case of assuming the position that only prospective agreements on requesting fines for delay should be prohibited, would the restriction be justified in the case of interest.