46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO INTEREST ON JUDGMENTS; PROVIDING THAT THE STATE AND ITS POLITICAL SUBDIVISIONS ARE NOT EXEMPT FROM THE IMPOSITION OF POST-JUDGEMENT INTEREST; AMENDING A SECTION OF THE NMSA 1978.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 56-8-4 NMSA 1978 (being Laws 1851-1852, p. 255, as amended) is amended to read:

"56-8-4. JUDGMENTS AND DECREES--BASIS OF COMPUTING INTEREST.--

A. Interest shall be allowed on judgments and decrees for the payment of money from entry and shall be calculated at the rate of eight and three-quarters percent per year, unless the judgment is rendered on a written instrument having a different rate of interest, in which case interest shall be computed at a rate no higher than specified in the instrument or unless the judgment is based on tortious conduct, bad faith, intentional or willful acts, in which case interest shall be computed at the rate of fifteen percent.

B. The court in its discretion may allow interest of up to ten percent from the date the complaint is served upon the defendant after considering among other things:

(1) if the plaintiff was the cause of unreasonable delay in the adjudication of the plaintiff's claims; and

(2) if the defendant had previously made a reasonable and timely offer of settlement to the plaintiff.

C. Nothing contained in this section shall affect the award of interest or the time from which interest is computed as otherwise permitted by statute or common law.

D. The state and its political subdivisions are exempt from the provisions of Subsection B of this section, except as otherwise provided by statute or common law."

Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2003.