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| [ House Amendment 001 ] |
90_HB0628
735 ILCS 5/2-1303 from Ch. 110, par. 2-1303
815 ILCS 205/2 from Ch. 17, par. 6402
Amends the Code of Civil Procedure and the Interest Act.
Replaces provisions concerning interest on judgments and
interest allowed to creditors. Provides for interest in
specified types of actions (but not including actions for
damages arising from personal injury or death). Specifies
methods for calculating applicable rates of prejudgment and
postjudgment interest based on yield equivalents of U.S.
Treasury bills. Makes other changes. Effective immediately.
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1 AN ACT concerning interest, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Code of Civil Procedure is amended by
5 changing Section 2-1303 as follows:
6 (735 ILCS 5/2-1303) (from Ch. 110, par. 2-1303)
7 Sec. 2-1303. Prejudgment and postjudgment interest on
8 judgment.
9 (a) Prejudgment interest shall be recovered as follows:
10 (1) On all moneys after they become due on any
11 bond, bill, promissory note, or other instrument in
12 writing.
13 (2) On money lent or advanced for the use of
14 another.
15 (3) On money due on the settlement of account from
16 the day of liquidating accounts between the parties and
17 ascertaining the balance.
18 (4) On money received to the use of another and
19 retained without the owner's knowledge.
20 (5) On money withheld by an unreasonable and
21 vexatious delay of payment.
22 (6) On a sum awarded for breach of an oral or
23 written agreement.
24 (7) Because of an intentional act depriving or
25 otherwise interfering with title to, or enjoyment of,
26 real or personal property, including money.
27 (8) As otherwise provided by law or in equity.
28 This Section does not authorize the recovery of
29 prejudgment interest for damages arising from personal injury
30 or death.
31 (b) Prejudgment interest shall be computed from the date
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1 the cause of action first arose, except that interest on
2 damages incurred after that date shall be computed from the
3 date incurred. If the damages were incurred at various
4 times, interest shall be computed on each item from the date
5 it was incurred or on all of the damages from a single
6 reasonable intermediate date.
7 (c) Except as otherwise agreed, the rate of prejudgment
8 interest for each calendar year or portion thereof shall be
9 1% per annum above the rate equal to the coupon issue yield
10 equivalent (as determined by the United States Secretary of
11 the Treasury) of the average accepted auction price for the
12 last auction of 52-week United States Treasury bills
13 conducted during the preceding calendar year. The rate of
14 prejudgment interest shall be computed each calendar year in
15 accordance with this subsection and shall be applied daily to
16 the date of judgment.
17 (d) Judgments recovered in any court shall draw interest
18 at the rate of 3% per annum above the rate for prejudgment
19 interest, calculated from the date of the judgment until
20 satisfied except when the judgment debtor is a unit of local
21 government as defined in Section 1 of Article VII of the
22 Constitution, a school district, a community college
23 district, or any other governmental entity, in which case the
24 rate shall be equal to the rate for prejudgment interest.
25 When judgment is entered upon any award, report, or verdict,
26 interest shall be computed at the rate specified in this
27 subsection (d), determined as of the day of judgment, from
28 the time when the award, report, or verdict is rendered to
29 the time judgment is entered thereon, and shall be included
30 in the judgment. Interest shall be computed and charged only
31 on the unsatisfied portion of the judgment as it exists from
32 time to time. The judgment debtor may, by tender of payment
33 of judgment, costs, and interest accrued to the date of
34 tender, stop the further accrual of interest on the judgment
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1 notwithstanding the prosecution of an appeal or other steps
2 to reverse, vacate, or modify the judgment.
3 (e) The courts shall take judicial notice of the rates
4 provided in this Section.
5 (f) Subsections (a) through (e) apply to causes if
6 action accruing on or after the effective date of this
7 amendatory Act of 1997.
8 (g) This subsection (g) applies to causes of action
9 accruing before the effective date of this amendatory Act of
10 1997. Judgments recovered in any court shall draw interest at
11 the rate of 9% per annum from the date of the judgment until
12 satisfied or 6% per annum when the judgment debtor is a unit
13 of local government, as defined in Section 1 of Article VII
14 of the Constitution, a school district, a community college
15 district, or any other governmental entity. When judgment is
16 entered upon any award, report or verdict, interest shall be
17 computed at the above rate, from the time when made or
18 rendered to the time of entering judgment upon the same, and
19 included in the judgment. Interest shall be computed and
20 charged only on the unsatisfied portion of the judgment as it
21 exists from time to time. The judgment debtor may by tender
22 of payment of judgment, costs and interest accrued to the
23 date of tender, stop the further accrual of interest on such
24 judgment notwithstanding the prosecution of an appeal, or
25 other steps to reverse, vacate or modify the judgment.
26 (Source: P.A. 85-907.)
27 Section 10. The Interest Act is amended by changing
28 Section 2 as follows:
29 (815 ILCS 205/2) (from Ch. 17, par. 6402)
30 Sec. 2. This Section does not apply to causes of action
31 accruing on or after the effective date of this amendatory
32 Act of 1997. Creditors shall be allowed to receive at the
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1 rate of five (5) per centum per annum for all moneys after
2 they become due on any bond, bill, promissory note, or other
3 instrument of writing; on money lent or advanced for the use
4 of another; on money due on the settlement of account from
5 the day of liquidating accounts between the parties and
6 ascertaining the balance; on money received to the use of
7 another and retained without the owner's knowledge; and on
8 money withheld by an unreasonable and vexatious delay of
9 payment.
10 (Source: Laws 1891, p. 149.)
11 Section 99.Effective date. This Act takes effect upon
12 becoming law.