Bill Text: OR SB516 | 2011 | Regular Session | Engrossed

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Bill Title: Relating to a legal rate of interest.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB516 Detail]

Download: Oregon-2011-SB516-Engrossed.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3157

                           A-Engrossed

                         Senate Bill 516
                   Ordered by the Senate May 3
             Including Senate Amendments dated May 3

Sponsored by Senator DINGFELDER (Presession filed.)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.

  Provides that nine percent rate of interest applies to
judgments for payment of money, to awards in   { - arbitration
proceedings that court mandates - }   { + court-mandated
arbitration proceedings that are related to consumer
contracts + } and to mediated agreements  { + that are related to
consumer contracts and + } that are subject to judgment for
failure to comply with agreement.

                        A BILL FOR AN ACT
Relating to a legal rate of interest; creating new provisions;
  and amending ORS 82.010.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 82.010 is amended to read:
  82.010. (1)   { - The rate of interest for the following
transactions, - }  If   { - the - }  parties { +  to a contract
or agreement + } have not otherwise agreed to a rate of interest,
 { - is - }  { +  a rate of + } nine percent per annum { +
applies to + } and is payable on:
  (a) All moneys after   { - they - }  { +  the moneys + } become
due  { - ; - }  { + , + } but open accounts bear interest from
the date of the last item
  { - thereof - }  { +  listed in the open account + }.
  (b) Money   { - received to the use of another and retained - }
 { +  that a person receives for the person's own use and
retains + } beyond a reasonable time without the owner's express
or implied consent.
  (c) Money   { - due or to - }  { +  that is or will + } become
due   { - where there is - }  { +  under + } a contract to pay
interest   { - and no rate specified - }  { +  that does not
specify a rate + }.
  (2) Except as provided in this subsection, the rate of interest
on judgments for the payment of money { + , for awards in
court-mandated arbitration proceedings that arise out of consumer
contracts and for mediated agreements that are related to
consumer contracts and that are subject to a judgment for a
failure to comply with the agreement + } is nine percent per
annum. The following apply as described:

  (a) Interest on a judgment under this subsection accrues from
the date   { - of the entry of - }  { +  on which + } the
judgment { +  is entered + } unless the judgment specifies
another date.
  (b) Interest on a judgment under this subsection is simple
interest, unless   { - otherwise provided by - }  { +  a + }
contract { +  provides otherwise + }.
  (c) Interest   { - accruing - }  { +  that accrues + } from the
date   { - of the entry of - }  { +  on which + } a judgment { +
is entered also accrues + }   { - shall also accrue - }  on
interest that accrued before the date   { - of entry of a - }
 { +  on which the + } judgment { +  was entered + }.
  (d) Interest under this subsection   { - shall also accrue - }
 { +  also accrues + } on attorney fees and costs entered as part
of the judgment.
  (e)  { + Except for a loan described in subsection (3) of this
section, + } a judgment on a contract   { - bearing - }  { +
that bears + } more than nine percent interest shall bear
interest at   { - the same rate provided in the contract - }
 { +  nine percent + } as of the date of entry of the
judgment { + , of the arbitration award in a proceeding that
arises out of a consumer contract or of the mediated agreement
that is related to a consumer contract and that is subject to a
judgment for a failure to comply with the agreement + }.
  (f) The rate of interest on a judgment rendered in favor of a
plaintiff in a civil action to recover damages for injuries
resulting from the professional negligence of a person
 { - licensed by - }  the Oregon Medical Board { +  licenses + }
under ORS chapter 677 or the Oregon State Board of Nursing { +
licenses + } under ORS 678.010 to 678.410 is the lesser of five
percent per annum or three percent in excess of the discount rate
in effect at the Federal Reserve Bank in the Federal Reserve
district where the injuries occurred.
  (3) Except as provided in ORS 82.025,   { - no - }  { +  a + }
person   { - shall - }  { +  may not + }:
  (a) Make a business or agricultural loan of $50,000 or less at
an annual rate of interest   { - exceeding - }  { +  that
exceeds + } the greater of 12 percent  { - , - }  or five
 { - percent - }  { +  percentage points + } in excess of the
discount rate, including any surcharge on the discount rate, on
90-day commercial paper in effect at the Federal Reserve Bank in
the Federal Reserve district where the person   { - making - }
 { +  that makes + } the loan is located, on the date the { +
person makes the + } loan or the initial advance of funds under
the loan   { - is made - } ; or
  (b) Make a loan of $50,000 or less, except a loan made under
paragraph (a) of this subsection, at an annual rate of interest
  { - exceeding - }  { +  that exceeds + } the greater of 12
percent  { - , - }  or five
  { - percent - }  { +  percentage points + } in excess of the
discount rate on 90-day commercial paper in effect at the Federal
Reserve Bank in the Federal Reserve district where the person
 { - making - }  { +  that makes + } the loan is located, on the
date the { +  person makes the + } loan or the initial advance of
funds under the loan   { - is made - } .
  (4)   { - Any person who - }  { +  A person that + } violates
subsection (3) of this section   { - shall forfeit - }  { +
forfeits + } the right to collect or receive   { - any - }
interest upon   { - any - }  { +  a + } loan for which { +  the
person charges, contracts for or receives + } a greater rate of
interest or consideration than is permitted by subsection (3) of
this section
  { - has been charged, contracted for or received - } . The
borrower upon
  { - such - }  { +  the + } loan   { - shall be - }  { +  is + }
required to repay only the principal amount borrowed.
   { +  (5) As used in this section, 'consumer contract' means a
contract that an individual enters into to purchase goods or
services for the individual's personal, family or household
purposes. + }
  SECTION 2.  { + The amendments to ORS 82.010 by section 1 of
this 2011 Act apply to contracts that are entered into,
renegotiated, renewed, extended, sold, assigned or otherwise
transferred on or after the effective date of this 2011 Act. + }
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