Free How to Determine Pre- & Post- Judgment Interest Rates in 2009 - Alaska

How to Determine Pre- & Post- Judgment Interest Rates in 2009
1. 2. 3. Is there a contract that sets the interest rate? If not, go to #2. Is there a statute other than AS 09.30.070 that sets the interest rate? 1 If not, go to #3. When did the cause of action accrue? 2 a. b. Before August 7, 1997: Both the pre- & post- judgment interest rates are 10.5%3 On or After August 7, 1997: Both pre- & post- judgment interest rates will be the interest rate for the year in which the judgment is entered.4 For judgments entered in 2009, this rate is 3.50%.5

Note: After the interest rate on a particular judgment is established, it does not later change, even though the interest rate changes. For example: The post-judgment interest rate on a judgment entered in 2001 is 9%. That rate will stay 9% until the judgment is paid. It is not affected by the fact that new judgments entered in 2009 will have a 3.50% interest rate.
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Examples of other statutes that set interest rates: · AS 25.27.025 ­ child support arrearages · AS 06.05.473(h) ­ claims upon liquidation of a state bank · AS 09.55.440(a) ­ compensation for property taken in eminent domain proceeding · AS 13.16.475(d) ­ claims against decedent's estate Accrue. In general, a cause of action "accrues" when a suit may be maintained thereon, that is, when sufficient events have occurred to support a valid lawsuit (for example, when injury or damage occurs or when a contract is breached). See §§ 18 and 55 ch 26 SLA 1997 and Marine Solution Services v. Horton, 70 P.3d 393, 415 (Alaska 2003). The interest rate is 10.5% if the complaint was filed on or after July 1, 1980. If the complaint was filed before that date, a different rate applies. This rate is defined in AS 09.30.070(a) as "three percentage points above the 12th Federal Reserve District discount rate in effect on January 2 of the year in which the judgment or decree is entered." (Note: The telephone number for the 12th Federal Reserve District in San Francisco is (415) 974-2000. For a recording about the discount rate, call (415) 974-2230. Discount rate information is also available at the following website: www.frbsf.org/banking/data/discount/index.html ) The discount rate in effect on January 2, 2009 was 0.50 percent. The rates for prior years were: Year Federal Reserve Discount Rate on January 2 Pre- and Post- Judgment Interest Rate for Judgments Entered that Year

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1997* 5% 8% 1998 5% 8% 1999 4.5% 7.5% 2000 5% 8% 2001 6% 9% 2002 1.25% 4.25% 2003 .75% 3.75% 2004 2% 5% 2005 3.25% 6.25% 2006 5.25% 8.25% 2007 6.25% 9.25% 2008 4.75% 7.75% * After the August 7, 1997 effective date of the current interest rate law (§§ 18 and 55 ch 26 SLA 1997). ADM-505 (1/09)(cs) AS 09.30.070(a)