2005 Regular Session
To: Judiciary, Division A
By: Senator(s) Nunnelee
AN ACT TO AMEND SECTIONS 75-17-7 AND 75-17-9, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT JUDGMENTS OR DECREES IN CHILD OR SPOUSAL SUPPORT CASES SHALL BEAR COMPOUNDED INTEREST AT THE RATE OF 7%; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-17-7, Mississippi Code of 1972, is amended as follows:
75-17-7. (1) All judgments or decrees founded on any sale or contract shall bear interest at the same rate as the contract evidencing the debt on which the judgment or decree was rendered.
(2) All judgments or decrees founded on an obligation of support, including, but not limited to, child support, medical support and spousal support, shall bear interest compounded at a per annum rate of seven percent (7%) unless the judgment or decree provides otherwise.
(3) All other judgments or decrees shall bear interest at a per annum rate set by the judge hearing the complaint from the date of judgment or entry of decree.
SECTION 2. Section 75-17-9, Mississippi Code of 1972, is amended as follows:
75-17-9. (1) When a partial payment is made on a debt evidenced by a judgment or decree based upon a support obligation, including, but not limited to, child support, medical support and spousal support, the compounded interest and principal shall be aggregated, and the partial payment shall be applied to the total debt owed.
(2) When partial payments are made in other cases, the interest that has accrued to the time of payment, if any, shall be first paid, and the residue of such partial payment shall be placed to the payment of the principal, except that the parties may agree in writing that such partial payment, or any portion thereof, shall be applied first to the payment of principal, in which case the residue shall be applied to the payment of interest that has accrued to the time of payment.
SECTION 3. This act shall take effect and be in force from and after July 1, 2005.