Kentucky General Assembly Halves Judgment Interest Rate
The Kentucky legislature amended KRS 360.040, which governs the interest rate on money judgments. Previously, money judgments bore interest at 12% - the new rate is 6%, which is more in line with other states.
Importantly for financial institutions, the new statute provides that if the judgment is based on a contract or promissory note that establishes an agreed interest rate, then the judgment will bear interest at that rate. The new statute also specifically applies to prejudgment interest, as well as post-judgment interest. It is not clear whether the new statute will...
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