H. B. 2774
(By Delegates Trump, Riggs, Amores, Faircloth and Staton)
[Introduced February 24, 1995; referred to the
Committee on the Judiciary.]
A BILL to amend article two, chapter forty-eight of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
thirty-seven; and to amend article one, chapter
forty-eight-a of said code, by adding thereto a new section,
designated section five, all relating to interest on unpaid
installments on obligations arising from domestic relations
matters.
Be it enacted by the Legislature of West Virginia:
That article two, chapter forty-eight of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section
thirty-seven; and that article one, chapter forty-eight-a of said
code be amended by adding thereto a new section, designated
section five, all to read as follows:
CHAPTER 48. DOMESTIC RELATIONS.
ARTICLE 2. DIVORCE, ANNULMENT AND SEPARATE MAINTENANCE.
§48-2-37. Calculation of interest.
If an obligation to pay interest arises under this chapter
and the rate is not specified, the rate is that specified in
section thirty-one, article six, chapter fifty-six of this code.
Interest shall accrue only upon the outstanding principal of such
obligation. This section shall be construed to permit the
accumulation of simple interest, and may not be construed to
permit the compounding of interest.
CHAPTER 48A. ENFORCEMENT OF FAMILY OBLIGATIONS.
ARTICLE 1. GENERAL PROVISIONS.
§48A-1-5. Calculation of interest.
If an obligation to pay interest arises under this chapter
and the rate is not specified, the rate is that specified in
section thirty-one, article six, chapter fifty-six of this code.
Interest shall accrue only upon the outstanding principal of such obligation. This section shall be construed to permit the
accumulation of simple interest, and may not be construed to
permit the compounding of interest.
NOTE: The purpose of this bill is to clarify that interest
which accrues on obligations arising out of domestic relations
matters accrues at the statutory rate unless otherwise prescribed
by law. In addition, the bill clarifies that the interest which
accrues shall be simple, not compound interest.
These sections are is new; therefore, strike-throughs and
underscoring have been omitted.