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S1369................................................by JUDICIARY AND RULES JUDGMENTS - INTEREST RATE - Amends existing law to provide a minimum legal rate of interest on money due on the judgment of any competent court or tribunal. 02/16 Senate intro - 1st rdg - to printing 02/17 Rpt prt - to Jud
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-seventh Legislature Second Regular Session - 2004 IN THE SENATE SENATE BILL NO. 1369 BY JUDICIARY AND RULES COMMITTEE 1 AN ACT 2 RELATING TO THE LEGAL RATE OF INTEREST; AMENDING SECTION 28-22-104, IDAHO 3 CODE, TO PROVIDE FOR A MINIMUM LEGAL RATE OF INTEREST ON MONEY DUE ON THE 4 JUDGMENT OF ANY COMPETENT COURT OR TRIBUNAL BEGINNING ON JULY 1, 2004. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 28-22-104, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 28-22-104. LEGAL RATE OF INTEREST. (1) When there is no express contract 9 in writing fixing a different rate of interest, interest is allowed at the 10 rate of twelve cents (12¢) on the hundred by the year on: 11 1. Money due by express contract. 12 2. Money after the same becomes due. 13 3. Money lent. 14 4. Money received to the use of another and retained beyond a reasonable 15 time without the owner's consent, express or implied. 16 5. Money due on the settlement of mutual accounts from the date the bal- 17 ance is ascertained. 18 6. Money due upon open accounts after three (3) months from the date of 19 the last item. 20 (2) The legal rate of interest on money due on the judgment of any compe- 21 tent court or tribunal shall be the rate of five percent (5%) plus the base 22 rate in effect at the time of entry of the judgment. The base rate shall be 23 determined on July 1 of each year by the Idaho state treasurer and shall be 24 the weekly average yield on United States treasury securities as adjusted to a 25 constant maturity of one (1) year and rounded up to the nearest one-eighth 26 percent (1/8%). The base rate shall be determined by the Idaho state treasurer 27 utilizing the published interest rates during the second week in June of the 28 year in which such interest is being calculated. Provided however, that begin- 29 ning on July 1, 2004, the legal rate of interest pursuant to this subsection 30 shall be no less than ten percent (10%) per annum. The legal rate of interest 31 as announced by the treasurer on July 1 of each year shall operate as the rate 32 applying for the succeeding twelve (12) months to all judgments declared dur- 33 ing such succeeding twelve (12) month period. The payment of interest and 34 principal on each judgment shall be calculated according to a three hundred 35 sixty-five (365) day year.
STATEMENT OF PURPOSE RS 13796 The statutory judgement interest rate historically has had a variety of different standards. For many years the judgement interest rate was 18% per year. The legal rate has been on a floating rate for many years. At the time of the establishment of the standard the judgement interest rate had always been an additional encouragement to satisfy judgements. Today in light of the current treasury security rate the interest rate is quite small. The purpose of this legislation is to put a floor on judgement interest rates of 10%. FISCAL IMPACT No fiscal impact. Contact Name: Senator Bart M. Davis Phone: (208) 332-1305 STATEMENT OF PURPOSE/FISCAL NOTE S 1369