SB207 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Cam Ward
Republican
Session: Regular Session 2011
Title: Money judgments not based on a contract action, computation of interest further regulated, Sec. 8-8-10 am'd. (2011-20350)
Summary: SB207 changes how interest is calculated on money judgments in Alabama, setting a 7.5% annual rate for non-contract judgments with daily, annually compounded post-judgment interest.
What This Bill Does
If passed, judgments for money not based on a contract would accumulate interest at 7.5% per year from the date the judgment is entered. Judgments based on contracts would continue to use the contract's own interest rate. Post-judgment interest would be calculated daily up to the date of payment and would be compounded once per year. The act applies to judgments entered after the effective date, and costs taxed as part of the proceeding would also bear the 7.5% rate from the entry date.

Who It Affects
People involved in civil money judgments not based on a contract (plaintiffs and defendants) who would have interest accrual changed to 7.5% from the judgment date.
Trustees, executors, administrators, and attorneys whose fees are taxed as costs in these cases, who would bear interest at 7.5% from the date of entry.

Key Provisions
Non-contract money judgments bear interest at 7.5% per year from the date of entry.
Judgments based on contracts continue to use the interest rate stated in the contract.
Post-judgment interest is calculated daily to the date of payment and is compounded annually.
The act applies to judgments entered after the effective date; costs taxed as part of the proceeding bear the same 7.5% rate from the date of entry.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Banks and Banking