Judicature (Prescribed Rate of Interest) Order 2011

2011/177

Coat of Arms of New Zealand

Judicature (Prescribed Rate of Interest) Order 2011

Anand Satyanand, Governor-General

Order in Council

At Wellington this 23rd day of May 2011

Present:
His Excellency the Governor-General in Council

Pursuant to section 87(3) of the Judicature Act 1908, His Excellency the Governor-General, acting on the advice and with the consent of the Executive Council, makes the following order.

Order

1  Title
  • This order is the Judicature (Prescribed Rate of Interest) Order 2011.

2  Commencement
  • This order comes into force on 1 July 2011.

3  Application
  • This order applies to every judgment given on or after 1 July 2011 in proceedings of a kind described in section 87(1) or (2) of the Judicature Act 1908 (whether the proceedings were commenced before, on, or after that day).

4  Rate of interest of 5.0% prescribed
  • This clause prescribes for the purposes of section 87 of the Judicature Act 1908 the rate of 5.0% per year.

5  Revocation

Michael Webster,
for Clerk of the Executive Council.


Explanatory note

This note is not part of the order, but is intended to indicate its general effect.

This order, which comes into force on 1 July 2011, decreases from 8.4% to 5.0% the maximum rate of interest that the High Court, the Court of Appeal, or the Supreme Court can, under section 87(1) or (2) of the Judicature Act 1908, include in the sum for which judgment is given in proceedings for the recovery of a debt or damages.

The rate of interest prescribed for the purposes of section 87 of the Judicature Act 1908 is also payable—

  • in determining the present value of a debt for the purposes of section 309(1) of the Companies Act 1993:

  • in determining the interest payable under section 311(4) of the Companies Act 1993 on claims admitted by a liquidator:

  • in determining the maximum rate of interest that the High Court can, under section 77(2) of the District Courts Act 1947, order one party to pay to another where the other has paid an amount under a judgment or order of a District Court and, on appeal from that judgment or order, the High Court decides that some or all of the amount did not need to be paid:

  • in determining the interest payable under section 114 of the Accident Compensation Act 2001 on any payment of weekly compensation not made within a month after the Accident Compensation Corporation has received all information necessary to enable it to calculate and make the payment:

  • in calculating the present value of a debt for the purposes of section 253 of the Insolvency Act 2006:

  • in calculating post-adjudication interest payable on admitted creditors' claims under sections 265 and 266 of the Insolvency Act 2006:

  • in calculating the interest payable under section 235(3)(a) of the Land Transfer Act 1952 on unpaid fees:

  • in calculating the interest payable under section 41A of the Life Insurance Act 1908 on money payable under a life insurance policy that has not been paid out within 90 days after the death of the person insured:

  • in calculating the maximum amount payable under section 67B(1)(a) of the Life Insurance Act 1908 on the death of a person who is under the age of 10 years:

  • in calculating the interest payable under section 23(1) of the Maori Reserved Land Amendment Act 1997 on compensation under section 13, 15, or 16 of that Act or section 4 of the Maori Reserved Land Amendment Act 1998 that is not paid to the person entitled within 3 months after the person became entitled to be paid where the delay is attributable to the Crown:

  • in calculating the interest payable under certain clauses implied in leases under Schedule 1 of the Maori Reserved Land Amendment Act 1997:

  • in calculating the interest that a court may order to be paid on the amount of a call on members under section 19(1) of the Mutual Insurance Act 1955 remaining unpaid after 30 days:

  • in determining the rate of interest payable that a resident may receive in relation to a voidable occupation right agreement under section 31(2)(b) of the Retirement Villages Act 2003 and regulation 44 of the Retirement Villages (General) Regulations 2006:

  • in determining the maximum rate of interest that a disputes panel may order an operator to pay a resident under section 70(1) of the Retirement Villages Act 2003:

  • in calculating the interest payable by a party to a credit arrangement who has failed to pay a fee under regulation 4(1) of the Cadastral Survey (Fees) Regulations 2003:

  • in determining the rate of interest payable on a late payment of calls under clause 7(3) of the Schedule of the Community Water Supply Associations Order 1997:

  • in determining the interest payable under certain High Court Rules, and under certain regulations.


Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 26 May 2011.

This order is administered by the Ministry of Justice.