Bill Text: NY A10479 | 2019-2020 | General Assembly | Introduced

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Bill Title: Provides that the rate of interest on money judgments in actions involving consumer credit transactions shall be calculated at the one-year United States treasury bill rate.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2020-05-22 - referred to codes [A10479 Detail]

Download: New_York-2019-A10479-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10479

                   IN ASSEMBLY

                                      May 22, 2020
                                       ___________

        Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Weinstein)
          -- read once and referred to the Committee on Codes

        AN ACT to amend the civil practice law and rules,  in  relation  to  the
          rate  of  interest  charged on money judgments arising out of consumer
          debt

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section  5004  of  the  civil  practice law and rules, as
     2  amended by chapter 258 of the laws  of  1981,  is  amended  to  read  as
     3  follows:
     4    §  5004.  Rate  of interest. Interest shall be at the rate of nine per
     5  centum per annum, except where otherwise provided by  statute;  provided
     6  the annual rate of interest to be paid on a judgment or accrued claim in
     7  an  action arising out of a consumer debt where a purchaser, borrower or
     8  debtor is a defendant shall be calculated at the one-year United  States
     9  treasury  bill  rate.  For  the  purposes of this section, the "one-year
    10  United States treasury bill rate"  means  the  weekly  average  one-year
    11  constant maturity treasury yield, as published by the board of governors
    12  of  the federal reserve system, for the calendar week preceding the date
    13  of the entry of the judgment awarding damages. The weekly rate of inter-
    14  est shall be calculated  by  the  office  of  court  administration  and
    15  published  for  permanent  public access on such office's website on the
    16  last business day of each week. In no event shall the rate  of  interest
    17  exceed  three  per  centum  per annum. For the purposes of this section,
    18  "consumer debt" means  any  obligation  or  alleged  obligation  of  any
    19  natural  person  to  pay money arising out of a transaction in which the
    20  money, property, insurance or services which  are  the  subject  of  the
    21  transaction  are  primarily  for personal, family or household purposes,
    22  whether or not such obligation has been reduced to judgment,  including,
    23  but  not limited to, a consumer credit transaction, as defined in subdi-
    24  vision (f) of section one hundred five of this chapter.
    25    § 2. This act shall take effect immediately.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15601-06-0