SENATE BILL 216

50th legislature - STATE OF NEW MEXICO - second session, 2012

INTRODUCED BY

Michael S. Sanchez

AN ACT

RELATING TO INTEREST; LOWERING THE RATE OF INTEREST TO BE ALLOWED ON JUDGMENTS AND DECREES.

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-fourths percent per year] a rate equal to the prime rate as published in the Wall Street Journal on the date of the entry of the judgment, unless:

                (1) 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

                (2) the judgment is based on tortious conduct, bad faith or intentional or willful acts, in which case interest shall be computed at the rate of fifteen percent.

          B. Unless the judgment is based on unpaid child support, 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 this section except as

otherwise provided by statute or common law."

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