478-2 Legal rate; computation. When there is no express written contract fixing a different rate of interest, interest shall be allowed at the rate of ten per cent a year, except that, with respect to obligations of the State, interest shall be allowed at the prime rate for each calendar quarter but in no event shall exceed ten per cent a year, as follows:

(1) For money due on any bond, bill, promissory note, or other instrument of writing, or for money lent, after it becomes due;

(2) For money due on the settlement of accounts, from the day on which the balance is ascertained;

(3) For money received to the use of another, from the date of a demand made; and

(4) For money upon an open account, after sixty days from the date of the last item or transaction.

As used in this section, "prime rate" means the prime rate as posted in the Wall Street Journal on the first business day of the month preceding the calendar quarter. [CC 1859, 1480; am L 1868, p 9; am L 1898, c 4, 1; am L 1905, c 51, 1; RL 1925, 3585; RL 1935, 7050; am L 1935, c 19, 1; RL 1945, 8731; am L 1955, c 245, 1; RL 1955, 191-1; HRS 478-1; am L 1982, c 288, 1; ren L 1986, c 137, pt of 1; am L 1993, c 179, 1]

 

Case Notes

 

Interest not interrupted by debtor's death. 3 H. 397.

Statutory rate applies to balance due on an account stated when no written agreement for higher rate. 3 H. 397.

Foreign judgment carries interest. 8 H. 335.

Statutory rate applies to legacy not paid. 9 H. 492.

Written agreement for payment of rent is "instrument of writing", and rent carries interest from the due date. 19 H. 446.

Bank deposit is "money lent". 36 H. 571; 43 H. 1.

In computing blight damages where property was condemned, held legal rate applied in absence of evidence of normal commercial rate, where no special statutory rate. 45 H. 650, 372 P.2d 348.

In absence of specific agreement, obligation to pay becomes "due" within reasonable time. 48 H. 349, 402 P.2d 683.

Running of interest when stopped by garnishment. 48 H. 349, 402 P.2d 683.

Delinquent rentals carry interest. 61 H. 483, 605 P.2d 925.

Written agreement for payment of rent is "instrument of writing" and rent carries interest from the due date. 66 H. 431, 667 P.2d 251.

Prejudgment interest properly awarded under 636-16 from date of breach of contract at rate of ten per cent as provided in paragraph (1) for money due on settlement agreement between parties. 86 H. 21, 946 P.2d 1317.

No interest allowable where judgment for "lost rental income" not "delinquent rentals". 5 H. App. 603, 705 P.2d 67.

Not applicable to judgments against the State. 6 H. App. 70, 708 P.2d 829, aff'd, 68 H. 220, 708 P.2d 824.

Where no interest rate was set forth in order confirming sale of property to successful bidder at a judicial foreclosure sale, interest damages for mortgagee bank when bidder defaulted on payment should have been calculated at the ten per cent interest rate allowed by this section, not the rate of interest the original mortgagor had agreed to pay bank under the original mortgagor's adjustable rate promissory note. 96 H. 348 (App.), 31 P.3d 205.

As 661-8 disallows prejudgment interest on claims against the State, except in certain, identified instances, the State did not waive its sovereign immunity from an award of prejudgment interest under 661-8, and this section did not contradict or supersede the limitation of the State's obligation to pay prejudgment interest only upon a "contract expressly stipulating for the payment of interest", the circuit court did not err when it denied plaintiffs' request for prejudgment interest. 122 H. 150 (App.), 223 P.3d 215 (2009).

Cited: 35 H. 352, 366; 36 H. 107, 109.

 

 

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