ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

Senate: FICO DP 7-0-1-0 | 3rd Read 29-0-1-0

SB 1059: judgments; interest rates

Sponsor: Senator Mesnard, LD 13

Committee on Ways & Means

Overview

Specifies the effective date of a change in the prime rate as one business day following publication by the Board of Governors of the Federal Reserve System (Federal Reserve).

History

Unless specifically provided for in statute or a different rate is contracted for in writing, the current interest on any judgment other than a judgment on medical debt must be less than 10% yearly or at a yearly rate equal to 1% plus the prime rate published by the Board of Governors of the Federal Reserve in statistical release H.15 or any publication that may supersede it on the date that the judgment is entered. The judgment must state the applicable interest rate and it cannot change after it is entered (A.R.S. § 44-1201).

Every business day, the Federal Reserve publishes the prime rate in Statistical Release H.15, which is a rate posted by a majority of top 25 insured U.S.-chartered commercial banks. Prime is one of several base rates used by banks to price short-term business loans. The prime rate on February 21, 2024 is 8.50% (Federal Reserve).

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteSpecifies the effective date of a change in the prime rate as one business day following publication by the Federal Reserve. (Sec. 1)

2.   Makes technical changes. (Sec. 1)

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6.                     SB 1059

7.   Initials VP/MG    Page 0 Ways & Means

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