SB 895 - This act modifies the amount of interest that can be collected on a judgment balance in a civil action.
Currently, for judgments in nontort actions where a contract provides that the interest rate is more than nine percent, the interest shall be the amount specified in the contract. This act changes such interest rate to more than five percent. In all other nontort actions, the interest shall be the lesser of five percent or the Federal Funds Rate, plus two percent, rather than nine percent.
In tort actions the interest shall also be the Federal Funds Rate, plus two percent, rather than five percent. In no case shall the annual interest rate exceed five percent.
In tort actions prejudgment interest "shall," rather than "should," have an interest equal to the Federal Funds Rate, plus two percent, and not exceed five percent.
This act is substantially similar to HB 1864 (2018).