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How to Determine Pre- and Post- Judgment Interest Rates - 2009

  1. Is there a contract that sets the interest rate? If not, go to #2

  2. Is there a statute other than AS 09.30.070 that sets the interest rate?1 If not, go to #3

  3. When did the cause of action accrue?2

    a. Before August 7, 1997: Both the pre- and post- judgment interest rates are 10.5%3

    b. On or After August 7, 1997: Both pre- and post- judgment interest rates will be the interest rate for the year in which the judgment is entered.4 For judgments entered in 2009, this rate is 3.50%.5

Note: After the interest rate on a particular judgment is established, it does not later change, even though the interest rate changes. For example: The post-judgment interest rate on a judgment entered in 2001 is 9%. That rate will stay 9% until the judgment is paid. It is not affected by the fact that new judgments entered in 2009 will have a 3.50% interest rate.

1 Examples of other statutes that set interest rates:

2 Accrue. In general, a cause of action "accrues" when a suit may be maintained thereon, that is, when sufficient events have occurred to support a valid lawsuit (for example, when injury or damage occurs or when a contract is breached).

3 See §§ 18 and 55 ch 26 SLA 1997 and Marine Solution Services v. Horton, 70 P.3d 393, 415 (Alaska 2003). The interest rate is 10.5% if the complaint was filed on or after July 1, 1980. If the complaint was filed before that date, a different rate applies.

4 This rate is defined in AS 09.30.070(a) as "three percentage points above the 12th Federal Reserve District discount rate in effect on January 2 of the year in which the judgment or decree is entered." (Note: The telephone number for the 12th Federal Reserve District in San Francisco is (415) 974-2000. For a recording about the discount rate, call (415) 974-2230. Discount rate information is also available at the following website: http://www.frbsf.org/banking/data/discount/index.html)

5 The discount rate in effect on January 2, 2009 was 0.50 percent. The rates for prior years were:

Year
Federal Reserve Discount
Rate on January 2
Pre- and Post- Judgment Interest Rate
for Judgments Entered That Year
1997*
5%
8%
1998
5%
8%
1999
4.5%
7.5%
2000
5%
8%
2001
6%
9%
2002
1.25%
4.25%
2003
.75%
3.75%
2004
2%
5%
2005
3.25%
6.25%
2006
5.25%
8.25%
2007
6.25%
9.25%
2008
4.75%
7.75%

* After the August 7, 1997 effective date of the current interest rate law (§§ 18 and 55 ch 26 SLA 1997).


ADM-505 (1/09)(cs)
AS 09.30.070(a)


Rev. 31 December 2008
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