Bill > A02319

This bill modifies the interest rates that municipal corporations, housing authorities, the state, and other public corporations must pay when they are required to pay judgments or accrued claims. Instead of a previously undefined maximum interest rate, the bill now mandates that interest rates will be calculated based on the weekly average one-year constant maturity treasury yield, as published by the Federal Reserve Board, for the calendar week preceding the judgment date. The bill caps these interest rates at 9% per annum for most judgments, with a lower cap of 6% for judgments arising from condemnation proceedings or wrongful death actions. The change applies to various types of public entities, including municipal corporations, housing authorities, and other public corporations with the power to contract debt and collect fees. By tying the interest rate to a federal treasury yield, the bill provides a more dynamic and market-responsive method for calculating interest on legal judgments, while still maintaining an upper limit to protect public entities from potentially excessive interest payments.

Justice

https://www.nysenate.gov/legislation/bills/2025/A2319