HB278 Alabama 2014 Session

Summary

Primary Sponsor

Paul Beckman

Republican

Co-Sponsors

Rod ScottMerika Coleman

Session

Regular Session 2014

Title

Civil judgments, interest accrues from date of judgment, Sec. 8-8-10 am'd.

Summary

HB278 changes how interest starts on money judgments in Alabama: contract-based judgments accrue interest from the action date at up to 21% per year, while non-contract judgments accrue interest from the judgment date at 7.5% per year.

What This Bill Does

If passed, contract-based money judgments would accrue interest from the date the action occurred at the contract rate, with a maximum of 21% per year. All other money judgments would accrue interest from the date the judgment is signed at 7.5% per year. Fees taxed as costs for trustees, executors, administrators, or attorneys would also accrue interest at a like rate from the day of entry. The act applies to judgments entered on or after September 1, 2011, and becomes effective on the first day of the third month after governor approval.

Who It Affects

• Creditors winning contract-based money judgments, who would earn interest from the action date at the contract rate (capped at 21%).
• Debtors and others involved in non-contract money judgments, plus professionals whose costs are taxed, who would incur interest from the judgment date (non-contract) or from the day of entry (costs) at the specified rates.

Key Provisions

• For contract-based judgments: interest from the action date, at the contract rate, up to 21% per year.
• For all other judgments: interest from the date the judgment is signed at 7.5% per year.
• Costs taxed as part of the proceeding (trustee, executor, administrator, attorney fees) accrue interest from the day of entry at a like rate.
• The section applies to judgments entered on and after September 1, 2011, and the act becomes effective on the first day of the third month following governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Civil Procedure