HB 278 Summary

• Amends Section 8-8-10, Code of Alabama 1975, to change when interest accrues on money judgments from contract actions from the day of the cause of action to the date judgment is signed.

• Sets the interest rate on contract-based judgments at 21 percent per annum, unless a lower rate is specified in the contract.

• Maintains 7.5 percent per annum interest rate for all other money judgments from the date judgment is signed.

• Applies to all judgments entered on or after September 1, 2011.

• Becomes effective on the first day of the third month following passage and approval by the Governor.