SB 1059
Initials VP/MG Page 1 Transmitted
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
Senate: FICO DP 7-0-1-0 | 3rd Read 29-0-1-0-0
House: WM DP 8-0-0-2 | 3
rd
Read 59-0-1-0-0
SB 1059: judgments; interest rates
Sponsor: Senator Mesnard, LD 13
Transmitted
Overview
Specifies the effective date of a change in the prime rate as one business day following
publication by the Board of Governors of the Federal Reserve System (Federal Reserve).
History
Unless specifically provided for in statute or a different rate is contracted for in writing, the
current interest on any judgment other than a judgment on medical debt must be less than
10% yearly or at a yearly rate equal to 1% plus the prime rate published by the Board of
Governors of the Federal Reserve in statistical release H.15 or any publication that may
supersede it on the date that the judgment is entered. The judgment must state the
applicable interest rate and it cannot change after it is entered (A.R.S. § 44-1201).
Every business day, the Federal Reserve publishes the prime rate in Statistical Release H.15,
which is a rate posted by a majority of top 25 insured U.S.-chartered commercial banks.
Prime is one of several base rates used by banks to price short-term business loans. The prime
rate on February 21, 2024 is 8.50% (Federal Reserve).
Provisions
1. Specifies the effective date of a change in the prime rate as one business day following
publication by the Federal Reserve. (Sec. 1)
2. Makes technical changes. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note