SB 894 – Modifies the interest rate applied to pre and post-judgment money ordered in tort and nontort actions

• Sponsor: Munzlinger
• LR Number: 6062S.01I
• Committee: Small Business, Insurance and Industry
• Last Action: 4/1/2014 - Voted Do Pass S Small Business, Insurance and Industry Committee
• Effective Date: August 28, 2014

Current Bill Summary

SB 894 - Currently in nontort actions, absent provisions in the contract agreeing to a higher interest rate, the rate on postjudgment interest is nine percent. This act changes this interest rate to five percent. The act also states that in all other judgments ordering money, postjudgment interest shall be the adjusted rate of interest established by the Director of Revenue plus two percent, or the interest rate shall be five percent, whichever is less.

In tort actions, postjugdment and prejudgment interest on money due shall be the adjusted rate of interest established by the Director of Revenue plus two percent. The interest rate on any tort action judgment shall not exceed five percent.

JESSICA BAKER