Bill Text: MS SB2398 | 2023 | Regular Session | Introduced
Bill Title: Judgments; prohibit from bearing interest at a rate greater than 10 percent.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2023-01-31 - Died In Committee [SB2398 Detail]
Download: Mississippi-2023-SB2398-Introduced.html
MISSISSIPPI LEGISLATURE
2023 Regular Session
To: Judiciary, Division A
By: Senator(s) Bryan
Senate Bill 2398
AN ACT TO AMEND SECTION 75-17-7, MISSISSIPPI CODE OF 1972, TO PROHIBIT JUDGMENTS FROM BEARING INTEREST RATES THAT ARE GREATER THAN TEN PERCENT; TO AMEND SECTION 79-10-41, MISSISSIPPI CODE OF 1972, TO CONFORM WITH THE TEN PERCENT INTEREST RATE CAP SET BY THE PROPOSED AMENDMENT TO SECTION 75-17-7; TO AMEND SECTION 79-29-913, MISSISSIPPI CODE OF 1972, TO CONFORM WITH THE TEN PERCENT INTEREST RATE CAP SET BY THE PROPOSED AMENDMENT TO SECTION 75-17-7; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-17-7, Mississippi Code of 1972, is amended as follows:
75-17-7. All judgments or decrees founded on any sale or contract shall bear interest at the same rate as the contract evidencing the debt on which the judgment or decree was rendered, but the ascribed interest rate shall not exceed ten percent (10%). All other judgments or decrees shall bear interest at a per annum rate set by the judge hearing the complaint, which shall not exceed ten percent (10%), from a date determined by such judge to be fair but in no event prior to the filing of the complaint.
SECTION 2. Section 79-10-41, Mississippi Code of 1972, is amended as follows:
79-10-41. (1) If the disqualified shareholder does not accept the professional corporation's offer under Section 79-10-39(2) within the thirty-day period, the shareholder during the following thirty-day period may deliver a written notice to the corporation demanding that it commence a proceeding to determine the fair value of the shares. The corporation may commence a proceeding at any time during the sixty (60) days following the effective date of its offer notice. If it does not do so, the shareholder may commence a proceeding against the corporation to determine the fair value of his shares.
(2) The corporation or disqualified shareholder shall commence the proceeding in the chancery court of the county where the corporation's principal office (or, if none in this state, its registered office) is located. The corporation shall make the disqualified person a party to the proceeding as in an action against his shares. The jurisdiction of the court in which the proceeding is commenced is plenary and exclusive.
(3) The court may appoint one or more persons as appraisers to receive evidence and recommend decision on the question of fair value. The appraisers have the power described in the order appointing them, or in any amendment to it.
(4) The disqualified shareholder is entitled to judgment for the fair value of his shares determined by the court as of the date of death, disqualification or transfer together with interest from that date at a rate found by the court to be fair and equitable, but the interest rate shall not exceed ten percent (10%).
(5) The court may order the judgment paid in installments determined by the court.
SECTION 3. Section 79-29-913, Mississippi Code of 1972, is amended as follows:
79-29-913. (1) If the disqualified member does not accept the professional limited liability company's offer under Section 79-29-912(2) within the thirty-day period, the member during the following thirty-day period may deliver a written notice to the professional limited liability company demanding that it commence a proceeding to determine the fair value of the membership interest. The professional limited liability company may commence a proceeding at any time during the sixty (60) days following the effective date of its offer notice. If it does not do so, the member may commence a proceeding against the professional limited liability company to determine the fair value of the disqualified person's membership interest.
(2) The professional limited liability company or disqualified member shall commence the proceeding in the chancery court of the county where the professional limited liability company's principal office is located, or the Chancery Court of the First Judicial District of Hinds County, Mississippi, if the professional limited liability company does not have a principal office in this state. The professional limited liability company shall make the disqualified person a party to the proceeding as in an action against the disqualified person's membership interest. The jurisdiction of the court in which the proceeding is commenced is plenary and exclusive.
(3) The court may appoint one or more persons as appraisers to receive evidence and recommend decision on the question of fair value. The appraisers have the power described in the order appointing them, or in any amendment to it.
(4) The disqualified member is entitled to judgment for the fair value of the disqualified person's membership interest determined by the court as of the date of death, disqualification or transfer, together with interest from that date at a rate found by the court to be fair and equitable, but the interest rate shall not exceed ten percent (10%).
(5) The court may order the judgment paid in installments determined by the court.
(6) "Fair value" means the value of the membership interest of the professional limited liability company determined:
(a) Using customary and current valuation concepts and techniques generally employed for similar businesses in the context of the transaction requiring appraisal; and
(b) Without discounting for lack of marketability or minority status.
Section 4. This act shall take effect and be in force from and after June 30, 2023.
