Explanatory note

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

This order revokes the Judicature (Interest on Debts and Damages) Order 1980 on 1 August 2002. The effect of the revocation is to decrease from 11% to 7½% the maximum rate of interest that the High Court or the Court of Appeal may, under section 87(2) or (3) of the Judicature Act 1908, include in the sum for which judgment is given in proceedings for the recovery of debts or damages.

The rate of interest prescribed for the purposes of section 87 of the Judicature Act 1908 is also used by other enactments, including the following ones (and so also affects the matters dealt with in those enactments):

• •Companies Act 1993 section 309 (present value of debts payable after commencement of liquidation of companies):

• •Companies Act 1993 section 311 (interest on claims against companies in liquidation):

• •High Court Rule 363 (payments into Court including interest):

• •High Court Rule 538 (interest on judgment debts):

• •Injury Prevention, Rehabilitation, and Compensation Act 2001 section 114 (interest on late payment of weekly compensation):

• •Land Transfer Act 1952 section 235(3)(a) and Land Transfer Regulations 1966 regulation 36(1B) (interest on unpaid fees):

• •Life Insurance Act 1908 section 41A (interest payable on certain money payable under life insurance policy):

• •Life Insurance Act 1908 section 67B(1)(a) (limit on total amount of payments where deceased minor under age of 10 years):

• •Maori Reserved Land Amendment Act 1997 section 23(2) (interest payable on compensation):

• •Maori Reserved Land Amendment Act 1997 Schedule 1 clauses 8 and 25 (terms, implied into certain leases, as to interest on adjustments and on market values, respectively):

• •Mutual Insurance Act 1955 section 19 (calls on premium notes of members of mutual insurance associations).