Bill > S856

This bill proposes to change how prejudgment interest rates are calculated in Massachusetts. Currently, these rates are set at a fixed 12% per year, but this legislation would replace that fixed rate with a variable rate. Specifically, the new rate would be determined by 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 immediately before the date a judgment is issued. This change would apply to existing laws governing prejudgment interest in chapter 231 of the General Laws, sections 6B and 6C, meaning that instead of a flat 12% interest, the interest awarded on a judgment before it is paid would fluctuate based on this federal treasury yield.