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INTEREST RATE AMENDMENTS

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2019 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Craig Hall

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Senate Sponsor: ____________

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7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to interest rates related to contracts.
10     Highlighted Provisions:
11          This bill:
12          ▸     provides that the parties to a lawful contract may agree upon a rate of interest for the
13     contract; and
14          ▸     addresses the legal rate of interest when the parties to a contract do not specify a
15     rate of interest.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          15-1-1, as last amended by Laws of Utah 1989, Chapter 79
23     

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 15-1-1 is amended to read:
26          15-1-1. Interest rates -- Contracted rate -- Legal rate.
27          (1) The parties to a lawful contract may agree upon any rate of interest for [the loan or
28     forbearance of any money, goods, or chose in action that is the subject of] their contract.
29          (2) Unless parties to a lawful contract specify a different rate of interest, the legal rate
30     of interest for the [loan or forbearance of any money, goods, or chose in action] contract or a
31     claim for breach of the contract shall be 10% per annum.
32          (3) Nothing in this section may be construed in any way to affect any penalty or interest
33     charge that by law applies to delinquent or other taxes or to any contract or obligations made
34     before May 14, 1981.