SB 895 - Wieland, Paul
Modifies the amount of interest that can be collected on a judgment balance in civil actions
Bill Details
Sponsor
LR Number
5768S.02I
Title
SB 895
House Handler
N/A
Journal Page
N/A
Effective Date
August 28, 2018
Current Status
Hearing Scheduled But Not Heard S Judiciary and Civil and Criminal Jurisprudence Committee
Quick Links
Amendments
No amendments available
CURRENT BILL SUMMARY
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).
JESSI JAMES