Senate Bill 14: Interest Rate on Money Judgments
Senate Bill 14, as passed by the Wisconsin Assembly and Senate, is awaiting signature by Governor Walker. The legislation changes the interest rate on money judgments from the current rate of 12 percent per annum to the “prime rate of interest” plus 1.0 percent. Specifically, if a judgment is entered at any time between January 1 and July 1 of any year, the interest rate will be the prime rate in effect as of January 1 of that year, plus 1.0 percent. If the judgment is entered at any time after June 30 and prior to the following January 1, the interest rate on the judgment will be the prime rate in effect as of July 1 of that year, plus 1.0 percent.
Once the interest rate has been determined, it becomes constant for the duration of the judgment, until it is satisfied in full. It does not subsequently adjust if the prime rate changes. The prime rate is to be determined by reference to the prime rate as reported by the Federal Preserve Board. Given the fact that the prime rate of interest has been relatively low over the last few years, this legislation may work to the advantage of the judgment debtor.