The proposed bill SB1059 amends Arizona Revised Statutes section 44-1201 to adjust the effective date of the prime rate used for determining interest on judgments. Currently, the interest on judgments is based on the prime rate published by the Federal Reserve on the date the judgment is entered. The new bill specifies that the effective date of the prime rate will be the business day following its publication by the Federal Reserve, allowing for a more timely application of the interest rate.

Additionally, the bill makes technical changes to the language regarding interest rates, clarifying that the interest rate for loans, excluding medical debt, is set at 10 percent per year unless otherwise agreed in writing. It also maintains that the interest on judgments, excluding those on medical debt, will be the lesser of 10 percent per year or 1 percent plus the prime rate, with the new effective date provision ensuring that any changes in the prime rate will take effect promptly.

Statutes affected:
Introduced Version: 44-1201
Senate Engrossed Version: 44-1201
Chaptered Version: 44-1201