JUDGMENT INTEREST - S.B. 207: COMMITTEE SUMMARY
Senate Bill 207 (as introduced 2-14-01)
Sponsor: Senator Joanne G. Emmons
Committee: Judiciary
CONTENT
The bill would amend the Revised Judicature Act (RJA) to revise a provision pertaining to interest calculated when a judgment is rendered on a written instrument.
Currently, the RJA provides that, if a judgment is rendered on a written instrument, interest must be calculated from the date of filing the complaint to the date of satisfaction of the judgment at the rate of 12% per year compounded annually, unless the instrument has a higher rate of interest. Under the bill, that provision would apply if a judgment were rendered on a note, bond, land contract, insurance contract, or other written instrument evidencing indebtedness with a specified interest rate.
MCL 600.6013 - Legislative Analyst: P. Affholter
FISCAL IMPACT
The bill would have an indeterminate impact on the State and local units depending on the number of cases in which they would be paying or receiving interest on judgments.
- Fiscal Analyst: B. BowermanS0102\s207sa
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.