Senate Bill 2890

AN ACT TO AMEND SECTIONS 75-17-7 AND 75-17-9, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT JUDGMENTS OR DECREES IN CHILD OR SPOUSAL SUPPORT CASES SHALL BEAR COMPOUNDED INTEREST AT 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. All administrative or judicial judgments or decrees in a support case, including, but not limited to, child support, medical support and spousal support, shall bear compounded interest at a rate of seven percent (7%). 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. All other judgments or decrees shall bear interest at a per annum rate set by the judge hearing the complaint from a date determined by such judge to be fair but in no event prior to the filing of the complaint.

SECTION 2. Section 75-17-9, Mississippi Code of 1972, is amended as follows:

75-17-9. In all administrative or judicial judgments or decrees with a support obligation, including, but not limited to, child support, medical support and spousal support, the interest and principal are compounded. Otherwise, when partial payments are made, 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, 2004.