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.
STATE OF NEW YORK
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10479
IN ASSEMBLY
May 22, 2020
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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
