Bill > H1795

This bill modifies two sections of Massachusetts law (Sections 6B and 6C of Chapter 231) relating to prejudgment interest rates, replacing the previous fixed rate of 12% per annum with a more dynamic rate calculation. Specifically, the bill changes the interest rate calculation to be based on 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 of judgment. This means that instead of using a static 12% interest rate, the prejudgment interest rate will now fluctuate weekly based on the current Treasury yield, which could potentially result in lower or higher interest rates depending on economic conditions. The change applies to cases where prejudgment interest is awarded, essentially updating how courts calculate the interest owed on monetary judgments before a final court decision is reached.

Justice

https://malegislature.gov/Bills/194/H1795