A Lei nº 14.905/2024 e o direito intertemporal

Article 406 of the Brazilian Civil Code, which addresses legal interest on arrears, was amended by Law No. 14,905/2024 to expressly provide for the Selic rate (“Special System for Settlement and Custody”) as the legal rate in the absence of contractual stipulation. In view of the doctrinal and jurisprudential debate since the enactment of the Civil Code of 2002 regarding two interpretation options of the previous wording of Article 406, this paper explores the possibilities arising from intertemporal law and whether a retroactive effect of the Law on contractual default initiated before its enactment can be recognized and applied.