128. Meaning of 'interest'.

There is no statutory definition of 'interest'. The term has been variously judicially described as payment by time for the use of money1, compensation for delay in payment2, recompense to the creditor for being deprived of the use of his money3, and the creditor's share of the profit which the debtor is presumed to make from the use of the money4. Two requirements must normally be satisfied for a payment to amount to interest:


    (1)     there must be a sum of money by reference to which the payment is to be ascertained; and


    (2)     that sum of money must