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Arizona Revised Statutes Title 44. Trade and Commerce § 44-1201. Rate of interest for loan or indebtedness; interest on judgments; definitions

Current as of March 08, 2022 | Updated by FindLaw Staff

A. Interest on any loan, indebtedness or other obligation shall be as follows:

1. The maximum interest rate on medical debt shall be the lesser of the following:

(a) The annual rate equal to the weekly average one-year constant maturity treasury yield, as published by the board of governors of the federal reserve system, for the calendar week preceding the date when the consumer was first provided with a bill, or

(b) Three percent a year.

The maximum interest rate provided pursuant to this paragraph also applies to any judgments on medical debt.

2. For any loan, indebtedness or obligation other than medical debt, interest shall be at the rate of ten percent a year, unless a different rate is contracted for in writing, in which event any rate of interest may be agreed to. Interest on any judgment, other than a judgment on medical debt, that is based on a written agreement evidencing a loan, indebtedness or obligation that bears a rate of interest not in excess of the maximum permitted by law shall be at the rate of interest provided in the agreement and shall be specified in the judgment.

B. Unless specifically provided for in statute or a different rate is contracted for in writing, interest on any judgment other than a judgment on medical debt shall be at the lesser of ten percent a year or at a rate per year that is equal to one percent plus the prime rate as published by the board of governors of the federal reserve system in statistical release H.15 or any publication that may supersede it. A change in the rate that is prescribed in this subsection takes effect on the first business day following publication by the federal reserve. The judgment shall state the applicable interest rate and it shall not change after it is entered.

C. Interest on a judgment on a condemnation proceeding, including interest that is payable pursuant to § 12-1123, subsection B, shall be payable as follows:

1. If instituted by a city or town, at the rate prescribed by § 9-409.

2. If instituted by a county, at the rate prescribed by § 11-269.04.

3. If instituted by the department of transportation, at the rate prescribed by § 28-7101.

4. If instituted by a county flood control district, a power district or an agricultural improvement district, at the rate prescribed by § 48-3628.

D. A court shall not award either of the following:

1. Prejudgment interest for any unliquidated damages, future damages, punitive damages or exemplary damages that are found by the trier of fact.

2. Interest for any future damages, punitive damages or exemplary damages that are found by the trier of fact.

E. For the purposes of subsection D of this section, “future damages” means damages that will be incurred after the date of the judgment and includes the costs of any injunctive or equitable relief that will be provided after the date of the judgment.

F. If awarded, prejudgment interest shall be at the rate described in subsection A or B of this section.

G. For the purposes of this section:

1. “Health care services” means services provided at or by any of the following:

(a) Health care institutions as defined in § 36-401.

(b) Private offices or clinics of health care providers licensed under title 32, chapters 7, 11, 13, 15, 15.1, 16, 17, 18, 19, 19.1, 25, 28, 33, 34, or 35.  1

(c) Ambulances or ambulance services as defined in § 36-2201.

2. “Medical debt” means a loan, indebtedness or other obligation arising directly from the receipt of health care services or of medical products or devices.

1 Sections 32-801 et seq.; 32-1201 et seq.; 32-1401 et seq.; 32-1601 et seq.; 32-1671 et seq; 32-1701 et seq.; 32-1800 et seq.; 32-1901 et seq.; 32-2001 et seq.; 32-2061 et seq.; 32-2501 et seq.; 32-2801 et seq.; 32-3251 et seq.; 32-3401 et seq.; 32-3501 et seq.
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Cite this article: FindLaw.com - Arizona Revised Statutes Title 44. Trade and Commerce § 44-1201. Rate of interest for loan or indebtedness; interest on judgments; definitions - last updated March 08, 2022 | https://codes.findlaw.com/az/title-44-trade-and-commerce/az-rev-st-sect-44-1201/

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