Print Friendly SENATE BILL NO. 1421 – Judgments, money due, interest
SENATE BILL NO. 1421
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S1421................................................by JUDICIARY AND RULES
JUDGMENTS - INTEREST - Amends existing law to provide that the legal rate
of interest on money due on the judgment of any competent court or tribunal
shall be the rate of twelve percent per annum.
02/27 Senate intro - 1st rdg - to printing
02/28 Rpt prt - to Com/HuRes
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE SENATE
SENATE BILL NO. 1421
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 THAT THE LEGAL RATE OF INTEREST ON MONEY DUE ON THE JUDG-
4 MENT OF ANY COMPETENT COURT OR TRIBUNAL SHALL BE THE RATE OF TWELVE PER-
5 CENT BY THE YEAR.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 28-22-104, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 28-22-104. LEGAL RATE OF INTEREST. (1) When there is no express contract
10 in writing fixing a different rate of interest, interest is allowed at the
11 rate of twelve cents (12¢) on the hundred by the year on:
12 1. Money due by express contract.
13 2. Money after the same becomes due.
14 3. Money lent.
15 4. Money received to the use of another and retained beyond a reasonable
16 time without the owner's consent, express or implied.
17 5. Money due on the settlement of mutual accounts from the date the bal-
18 ance is ascertained.
19 6. Money due upon open accounts after three (3) months from the date of
20 the last item.
21 (2) The legal rate of interest on money due on the judgment of any compe-
22 tent court or tribunal shall be the rate of five twelve percent ( 512%) by the
23 year. plus the base rate in effect at the time of entry of the judgment. The
24 base rate shall be determined on July 1 of each year by the Idaho state trea-
25 surer and shall be the weekly average yield on United States treasury securi-
26 ties as adjusted to a constant maturity of one (1) year and rounded up to the
27 nearest one-eighth percent (1/8%). The base rate shall be determined by the
28 Idaho state treasurer utilizing the published interest rates during the second
29 week in June of the year in which such interest is being calculated. The legal
30 rate of interest as announced by the treasurer on July 1 of each year shall
31 operate as the rate applying for the succeeding twelve (12) months to all
32 judgments declared during such succeeding twelve (12) month period. The pay-
33 ment of interest and principal on each judgment shall be calculated according
34 to a three hundred sixty-five (365) day year.
STATEMENT OF PURPOSE
This bill would change the judgment legal rate of interest to a
flat rate of 12%.
No fiscal impact.
Name: Senator Bart M. Davis
STATEMENT OF PURPOSE/FISCAL NOTE S 1421