Reference Title: condemnation cases; interest rate

AN ACT
AMENDING TITLE 9, CHAPTER 4, ARTICLE 1, ARIZONA REVISED STATUTES, BY ADDING SECTION 9-409; AMENDING TITLE 11, CHAPTER 2, ARTICLE 4, ARIZONA REVISED STATUTES, BY ADDING SECTION 11-269.03; AMENDING SECTION 44-1201, ARIZONA REVISED STATUTES; AMENDING TITLE 48, CHAPTER 21, ARTICLE 1, ARIZONA REVISED STATUTES, BY ADDING SECTION 48-3628; RELATING TO INTEREST ON CONDEMNATION ACTIONS.

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 9, chapter 4, article 1, Arizona Revised Statutes, is amended by adding section 9-409, to read:

9-409 . Condemnation actions; interest

INTEREST ON A JUDGMENT IN A CONDEMNATION PROCEEDING INSTITUTED BY THE CITY OR TOWN, INCLUDING INTEREST THAT IS PAYABLE PURSUANT TO SECTION 12-1123, SUBSECTION B, SHALL BE CALCULATED FOR EACH MONTH OR PORTION OF A MONTH THAT INTEREST IS OWED AND SHALL BE EITHER:

1. THE PRIME RATE CHARGED BY BANKS ON SHORT-TERM BUSINESS LOANS AS DETERMINED FOR PUBLICATION IN THE BULLETIN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, AS OF THE FIRST DAY OF THAT MONTH.

2. IN THE ABSENCE OF A DETERMINATION BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, CALCULATED IN THE SAME MANNER BASED ON COMPARABLE DATA AS DETERMINED BY THE UNITED STATES DEPARTMENT OF COMMERCE, BUREAU OF ECONOMIC ANALYSIS, FOR PUBLICATION IN "SURVEY OF CURRENT BUSINESS".

3. IF THE PRIME RATE CANNOT BE DETERMINED FROM PUBLICATION AS PROVIDED IN PARAGRAPH 2, DETERMINED BY A FEDERAL AGENCY THAT IS ANNUALLY DESIGNATED BY THE GOVERNING BODY OF THE CITY OR TOWN AND THAT MAKES AND PUBLISHES DATA SUFFICIENT TO DETERMINE THE PRIME RATE OF INTEREST.

Sec. 2. Title 11, chapter 2, article 4, Arizona Revised Statutes, is amended by adding section 11-269.03, to read:

11-269.03 . Condemnation actions; interest

INTEREST ON A JUDGMENT IN A CONDEMNATION PROCEEDING INSTITUTED BY THE COUNTY, INCLUDING INTEREST THAT IS PAYABLE PURSUANT TO SECTION 12-1123, SUBSECTION B, SHALL BE CALCULATED FOR EACH MONTH OR PORTION OF A MONTH THAT INTEREST IS OWED AND SHALL BE EITHER:

1. THE PRIME RATE CHARGED BY BANKS ON SHORT-TERM BUSINESS LOANS AS DETERMINED FOR PUBLICATION IN THE BULLETIN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, AS OF THE FIRST DAY OF THAT MONTH.

2. IN THE ABSENCE OF A DETERMINATION BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, CALCULATED IN THE SAME MANNER BASED ON COMPARABLE DATA AS DETERMINED BY THE UNITED STATES DEPARTMENT OF COMMERCE, BUREAU OF ECONOMIC ANALYSIS, FOR PUBLICATION IN "SURVEY OF CURRENT BUSINESS".

3. IF THE PRIME RATE CANNOT BE DETERMINED FROM PUBLICATION AS PROVIDED IN PARAGRAPH 2, DETERMINED BY A FEDERAL AGENCY THAT IS ANNUALLY DESIGNATED BY THE BOARD OF SUPERVISORS AND THAT MAKES AND PUBLISHES DATA SUFFICIENT TO DETERMINE THE PRIME RATE OF INTEREST.

Sec. 3. Section 44-1201, Arizona Revised Statutes, is amended to read:

44-1201 . Rate of interest for loan or indebtedness; interest on judgments

A. Interest on any loan, indebtedness, judgment or other obligation shall be at the rate of ten per cent per annum, unless a different rate is contracted for in writing, in which event any rate of interest may be agreed to.

B. Interest on a judgment on a condemnation proceeding , instituted by the department of transportation, including interest which is payable pursuant to section 12-1123, subsection B, shall be payable at the rates prescribed by section 28-7101. AS FOLLOWS:

1. IF INSTITUTED BY A CITY OR TOWN, AT THE RATE PRESCRIBED BY SECTION 9-409.

2. IF INSTITUTED BY A COUNTY, AT THE RATE PRESCRIBED BY SECTION 11-269.03.

3. IF INSTITUTED BY THE DEPARTMENT OF TRANSPORTATION, AT THE RATE PRESCRIBED BY SECTION 28-7101.

4. IF INSTITUTED BY A COUNTY FLOOD CONTROL DISTRICT, AT THE RATE PRESCRIBED BY SECTION 48-3628.

B. C. A judgment given on an agreement bearing a higher rate not in excess of the maximum permitted by law shall bear the rate of interest provided in the agreement, and it shall be specified in the judgment.

Sec. 4. Title 48, chapter 21, article 1, Arizona Revised Statutes, is amended by adding section 48-3628, to read:

48-3628 . Condemnation actions; interest

INTEREST ON A JUDGMENT IN A CONDEMNATION PROCEEDING INSTITUTED BY THE DISTRICT, INCLUDING INTEREST THAT IS PAYABLE PURSUANT TO SECTION 12-1123, SUBSECTION B, SHALL BE CALCULATED FOR EACH MONTH OR PORTION OF A MONTH THAT INTEREST IS OWED AND SHALL BE EITHER:

1. THE PRIME RATE CHARGED BY BANKS ON SHORT-TERM BUSINESS LOANS AS DETERMINED FOR PUBLICATION IN THE BULLETIN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, AS OF THE FIRST DAY OF THAT MONTH.

2. IN THE ABSENCE OF A DETERMINATION BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, CALCULATED IN THE SAME MANNER BASED ON COMPARABLE DATA AS DETERMINED BY THE UNITED STATES DEPARTMENT OF COMMERCE, BUREAU OF ECONOMIC ANALYSIS, FOR PUBLICATION IN "SURVEY OF CURRENT BUSINESS".

3. IF THE PRIME RATE CANNOT BE DETERMINED FROM PUBLICATION AS PROVIDED IN PARAGRAPH 2, DETERMINED BY A FEDERAL AGENCY THAT IS ANNUALLY DESIGNATED BY THE DISTRICT AND THAT MAKES AND PUBLISHES DATA SUFFICIENT TO DETERMINE THE PRIME RATE OF INTEREST.

APPROVED BY THE GOVERNOR MAY 4, 1998.

FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 4, 1998.