PASSIVE DEBT

A debt upon which, by agreement between the debtor and creditor, no interest is payable, as
distinguished from active debt; i. c., a debt upon which interest is payable. In this
sense, the terms “active” and “passive” are applied to certain debts due from the
Spanish government to Great Britain. Wharton. In another sense of the words, a debt is
“active” or “passive” according as the person of the creditor or debtor is regarded ; a
passive debt being that which a man owes; an active debt that which is owing to him.
In this meaning every debt is both active and passive,

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