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SENATE BILL NO. 1421

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Bill Status

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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

Bill Text

                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact

                       STATEMENT OF PURPOSE

                             RS 16083

This bill would change the judgment legal rate of interest to a
flat rate of 12%.



                           FISCAL NOTE

No fiscal impact.







Contact
Name: Senator Bart M. Davis 
Phone: 208.332.1305 


STATEMENT OF PURPOSE/FISCAL NOTE                        S 1421