Bill Text: CT SB01121 | 2013 | General Assembly | Introduced

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Bill Title: An Act Concerning Postjudgment Interest.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2013-03-28 - Public Hearing 04/01 [SB01121 Detail]

Download: Connecticut-2013-SB01121-Introduced.html

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General Assembly		Raised Bill No. 1121
January Session, 2013		LCO No. 4429
		*04429_______JUD*
Referred to Committee on JUDICIARY
Introduced by:
(JUD)

AN ACT CONCERNING POSTJUDGMENT INTEREST.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 52-356d of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):

(a) When a judgment is rendered against a natural person, the judgment creditor or judgment debtor may move the court for an order for installment payments in accordance with a money judgment. After hearing and consideration of the judgment debtor's financial circumstances, the court may order installment payments reasonably calculated to facilitate payment of the judgment.

(b) In the case of a consumer judgment, the court may provide that compliance with the installment payment order, other than with an order for nominal payments pursuant to subsection (c) of this section, shall stay any property execution or foreclosure pursuant to that judgment, provided such a stay is reasonable considering the nature of the debt and the financial circumstances of the judgment debtor. In the case of a judgment arising out of services provided at a hospital, the court shall provide that compliance with the installment payment order shall stay any property execution or foreclosure pursuant to that judgment, including, but not limited to, execution on wages, execution on bank accounts, and execution on or foreclosure of real property.

(c) Notwithstanding the hearing requirement of subsection (a) of this section, on motion of the judgment creditor for an order of nominal payments, the court shall issue ex parte, without hearing, an order for nominal installment payments. The amount which shall constitute an order of nominal payments shall be set by the judges of the Superior Court. Such an order for nominal payments may be modified on motion of either party after hearing and consideration of the judgment debtor's financial circumstances.

(d) An installment payment order shall not be enforced by contempt proceedings, but on the judgment debtor's default on payments thereon, the judgment creditor may apply for a wage execution pursuant to section 52-361a.

(e) Interest on a money judgment at the rate of ten per cent a year, and no more, shall [continue to] be recovered and allowed and shall accrue under any installment payment order on such portion of the judgment as remains unpaid.

(f) On motion of either party and after notice and hearing or pursuant to a stipulation, the court may make such modification of an installment payment order as is reasonable.

Sec. 2. Section 37-1 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):

(a) The compensation for forbearance of property loaned at a fixed valuation, or for money, shall, in the absence of any agreement to the contrary [,] and, subject to the provisions of subsection (e) of section 52-356d, as amended by this act, be at the rate of eight per cent a year; and, in computing interest, three hundred and sixty days may be considered to be a year.

(b) Unless otherwise provided by agreement, interest at the legal rate from the date of maturity of a debt shall accrue as an addition to the debt.

Sec. 3. Section 37-3a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2013):

(a) Except as provided in sections 37-3b, 37-3c and 52-192a and subsection (e) of section 52-356d, as amended by this act, interest at the rate of ten per cent a year, and no more, may be recovered and allowed in civil actions or arbitration proceedings under chapter 909, including actions to recover money loaned at a greater rate, as damages for the detention of money after it becomes payable. Judgment may be given for the recovery of taxes assessed and paid upon the loan, and the insurance upon the estate mortgaged to secure the loan, whenever the borrower has agreed in writing to pay such taxes or insurance or both. Whenever the maker of any contract is a resident of another state or the mortgage security is located in another state, any obligee or holder of such contract, residing in this state, may lawfully recover any agreed rate of interest or damages on such contract until it is fully performed, not exceeding the legal rate of interest in the state where such contract purports to have been made or such mortgage security is located.

(b) In the case of a debt arising out of services provided at a hospital, prejudgment and postjudgment interest shall be no more than five per cent per year. The awarding of interest in such cases is discretionary.

This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2013	52-356d
Sec. 2	October 1, 2013	37-1
Sec. 3	October 1, 2013	37-3a

Statement of Purpose:

To provide that whenever the court orders installment payments in accordance with a money judgment, postjudgment interest shall be automatically granted and shall accrue on any portion of the judgment that remains unpaid.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]