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Text: HF00277                           Text: HF00279
Text: HF00200 - HF00299                 Text: HF Index
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House File 278

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 535.3, Code 1997, is amended to read as
  1  2 follows:
  1  3    535.3  INTEREST ON JUDGMENTS AND DECREES.
  1  4    1.  Interest shall be allowed on all money due on judgments
  1  5 and decrees of courts at the rate of ten percent per year,
  1  6 unless as follows:
  1  7    a.  If a different rate is fixed by the contract on which
  1  8 the judgment or decree is rendered, in which case the judgment
  1  9 or decree shall draw interest at the rate expressed in the
  1 10 contract, but may not exceeding exceed the maximum applicable
  1 11 rate permitted by the provisions of section 535.2, which.  The
  1 12 contract rate of interest must be expressed in the judgment or
  1 13 decree.  The interest
  1 14    b.  Structured, periodic, or other nonlump-sum payments
  1 15 ordered by the court pursuant to section 668.3, subsection 7,
  1 16 shall reflect interest in accordance with annuity principles.
  1 17    c.  In all other cases, a judgment or decree shall draw
  1 18 interest at a rate equal to the coupon issue yield equivalent,
  1 19 as determined by the United States secretary of the treasury,
  1 20 of the average accepted auction price for the last auction of
  1 21 fifty-two-week United States treasury bills settled
  1 22 immediately prior to the date of judgment.  The state court
  1 23 administrator shall distribute notice monthly to all district
  1 24 courts of the current rate.
  1 25    2.  Interest shall accrue from the date of the commencement
  1 26 of the action, and shall be computed daily to the date of
  1 27 payment, except as otherwise provided in subsection 3 this
  1 28 section.
  1 29    2.  This section does not apply to the award of interest
  1 30 for judgments and decrees subject to section 668.13.
  1 31    3. a.  Interest on periodic payments for child, spousal, or
  1 32 medical support shall not accrue until thirty days after the
  1 33 payment becomes due and owing.
  1 34    b.  Interest on future damages awarded according to section
  1 35 668.3, subsection 8, shall not accrue until the date of the
  2  1 entry of judgment.
  2  2    c.  Interest on structured judgments entered pursuant to
  2  3 section 668.3, subsection 7, shall accrue according to the
  2  4 order of the court issued in accordance with that section.
  2  5    Sec. 2.  Section 668.13, Code 1997, is amended to read as
  2  6 follows:
  2  7    668.13  INTEREST ON JUDGMENTS.
  2  8    Interest shall be allowed on all money due on judgments and
  2  9 decrees on actions brought pursuant to this chapter, subject
  2 10 to the following: shall be calculated according to the
  2 11 provisions of section 535.5.
  2 12    1.  Interest, except interest awarded for future damages,
  2 13 shall accrue from the date of the commencement of the action.
  2 14    2.  If the interest rate is fixed by a contract on which
  2 15 the judgment or decree is rendered, the interest allowed shall
  2 16 be at the rate expressed in the contract, not exceeding the
  2 17 maximum rate permitted under section 535.2.
  2 18    3.  Interest shall be calculated as of the date of judgment
  2 19 at a rate equal to the coupon issue yield equivalent, as
  2 20 determined by the United States secretary of the treasury, of
  2 21 the average accepted auction price for the last auction of
  2 22 fifty-two-week United States treasury bills settled
  2 23 immediately prior to the date of the judgment.  The state
  2 24 court administrator shall distribute notice monthly of that
  2 25 rate and any changes to that rate to all district courts.
  2 26    4.  Interest awarded for future damages shall not begin to
  2 27 accrue until the date of the entry of the judgment.
  2 28    5.  Interest shall be computed daily to the date of the
  2 29 payment, except as may otherwise be ordered by the court
  2 30 pursuant to a structured judgment under section 668.3, subsec-
  2 31 tion 7.
  2 32    6.  Structured, periodic, or other nonlump-sum payments
  2 33 ordered pursuant to section 668.3, subsection 7, shall reflect
  2 34 interest in accordance with annuity principles.  
  2 35                           EXPLANATION
  3  1    This bill amends Code section 535.3 to provide that the
  3  2 rate of interest on judgments and decrees shall be equal to
  3  3 the coupon issue rate of 52-week United States treasury bills
  3  4 unless a different rate is set by the contract upon which the
  3  5 judgment is issued, or unless a structured judgment is
  3  6 established under Code section 668.3, subsection 7.
  3  7    The bill also makes an editorial change by deleting
  3  8 duplicative provisions contained in Code section 668.13,
  3  9 incorporating nonduplicative provisions of Code section 668.13
  3 10 into Code section 535.3, and then amending Code section 668.13
  3 11 to provide that interest will be calculated on judgments
  3 12 according to Code section 535.3.  As a result, all rules
  3 13 regarding calculation of interest on judgments would be
  3 14 contained in one Code section.  
  3 15 LSB 1450HH 77
  3 16 jls/cf/24.1
     
Text: HF00277                           Text: HF00279
Text: HF00200 - HF00299                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index
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