COMMITTEE SUBSTITUTE
FOR
H. B. 2774
(By Delegates Trump, Riggs, Amores, Faircloth and Staton)
(Originating in the House Committee on the Judiciary)
[February 28, 1995]
A BILL to amend and reenact 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 and reenact article one,
chapter forty-eight-a of said code, by adding thereto a new
section, designated section three-a, 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 three-
a, all to read as follows:
CHAPTER 48. DOMESTIC RELATIONS.
ARTICLE 2. DIVORCE, ANNULMENT AND SEPARATE MAINTAINENCE.
§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. On or
after the effective date of this section, 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. Interest which has accrued on unpaid installments
accruing before the effective date of this section may not be
modified by any court, irrespective of whether such installment
accrued simple or compound interest:
Provided, That unpaid
installments upon which interest was compounded before the
effective date of this section shall accrue only simple interest
thereon on and after the effective date of this section.
CHAPTER 48A. ENFORCEMENT OF FAMILY OBLIGATIONS.
ARTICLE 1. GENERAL PROVISIONS.
§48A-1-3a. Calculation of interest.
(a) 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. On and after the effective date of this section, this
section shall be construed to permit the accumulation of simple
interest, and may not be construed to permit the compounding of
interest. Interest which has accrued on unpaid installments
accruing before the effective date of this section may not be
modified by any court, irrespective of whether such installment
accrued simple or compound interest:
Provided, That unpaid
installments upon which interest was compounded before the
effective date of this section shall accrue only simple interest
thereon on and after the effective date of this section.
(b) For the purposes of this chapter, the term "support" may
not be construed to permit the compounding of interest accruing ln
support arrearages.
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.