Legal Definitions - lex Genucia

The lex Genucia was a proposed law in ancient Rome that aimed to prohibit Roman citizens from charging interest on loans made to other Roman citizens. In essence, it sought to ensure that any money lent between citizens would be repaid as the principal amount only, without any additional fees or interest.

While this law was put forward in the 4th century B.C., historians debate whether it was ever formally enacted or effectively enforced. Many scholars believe that even if it was technically passed, it was largely disregarded in practice.

Here are some examples illustrating how the lex Genucia would have applied if it had been an active and enforced law:

• Scenario 1: A Merchant's Loan to a Craftsman

  Imagine a wealthy Roman merchant, Gaius, lends 500 sesterces to a skilled craftsman, Lucius, who needs capital to buy materials for a large commission. Under the provisions of the lex Genucia, Gaius would be forbidden from adding any interest to the loan. When Lucius repays the debt, he would only be obligated to return the original 500 sesterces, not an additional amount for the privilege of borrowing the money.

  This example demonstrates the lex Genucia by showing a direct financial transaction between two Roman citizens where the charging of any extra sum beyond the principal loan amount (interest) would be explicitly prohibited.

• Scenario 2: A Family Loan for Agricultural Needs

  Consider a Roman farmer, Marcus, who experiences a poor harvest and needs funds to purchase new seeds and feed his family until the next growing season. He approaches his prosperous cousin, Decimus, for a loan. If the lex Genucia were in full effect, Decimus could provide the necessary funds, but he could not demand any interest on the repayment, even if the loan was for a substantial amount or for an extended period. Marcus would only owe Decimus the exact sum he borrowed.

  This scenario illustrates the lex Genucia's application in a context of personal and family finance, highlighting that the prohibition on interest applied even in situations of financial need or for essential living expenses, as long as both parties were Roman citizens.

• Scenario 3: Funding a Public Works Project

  Suppose a prominent Roman senator, Quintus, needs a significant sum to finance the construction of a new public bathhouse, a project he believes will enhance his political standing. He secures a large loan from another wealthy Roman citizen, a retired general named Publius. According to the principles of the lex Genucia, Publius would only be entitled to receive the precise amount he lent to Quintus, without any additional interest, regardless of the size or public nature of the project.

  This example shows the lex Genucia's reach into larger-scale financial arrangements between influential Roman citizens, emphasizing that the ban on interest applied to all loans between citizens, irrespective of their social status or the purpose for which the funds were borrowed.