1Penalty Interest Rates Act 1983

Version No. 014 **Penalty Interest Rates Act 1983** **No. 9967 of 1983** Version incorporating amendments as at 17 May 2012 **table of provisions** *Section Page* 1 Short title 1 2 Penalty interest rate 1 3 *Repealed* 2 4 Interest on moneys etc. where no rate contracted 2 5 Interest on debts or certain sums recovered 3 6 Interest on actions for debt or damages 3 7 Interest on solicitors' costs 3 8 Interest on judgments 4 9 Interest on judgments 4 10 Interest on judgments 4 11 Interest on purchase money in arrears 4 12 Interest on purchase money in arrears 5 13 Interest on judgments and orders 5 14 Validation of certain orders for the payment of interest 5 15 Re-opening of cases 6 16 Reference to maximum rate deemed to be fixed rate 6 17 Validity of certain calculations of penalty interest 7 ENDNOTES 8 1. General Information 8 2. Table of Amendments 9 3. Explanatory Details 10 **Version No.** **014** **Penalty Interest Rates Act 1983** **No. 9967 of 1983** Version incorporating amendments as at 17 May 2012 An Act to amend the **Supreme Court Act 1958**, the **County Court Act 1958**, the **Property Law Act 1958**, the **Transfer of Land Act 1958** and the **Magistrates' Courts Act 1971** with respect to the Payment of Interest on certain unpaid Moneys, to make Provision for Rates of Interest payable under certain Instruments and for Purposes connected therewith. **BE IT ENACTED by the Queen's Most Excellent Majesty by and with the advice and consent of the Legislative Council and the Legislative Assembly of Victoria in this present Parliament assembled and by the authority of the same as follows (that is to say):** 1 Short title (1) This Act may be cited as the **Penalty Interest Rates Act 1983**. (2) The **Supreme Court Act 1958** is in this Act referred to as the Principal Act. (3) This Act shall be deemed to have come into operation on 1 July 1983. S. 2 substituted by No. 58/1989 s. 3. 2 Penalty interest rate (1) The penalty interest rate is the interest rate expressed as a percentage fixed by the Attorney-General from time to time by notice published in the Government Gazette. (2) The Attorney-General must determine the penalty interest rate to be fixed by— (a) obtaining from time to time a recommendation from the Treasurer as to an appropriate institutional rate of interest, which must be a rate— (i) which is charged for loans or paid for borrowings by a public or commercial institution; and (ii) which, in the opinion of the Treasurer, reflects prevailing commercial rates of interest; and (b) determining, after consultation with the Treasurer, whether the recommended institutional rate should be adjusted to include a penalty element, and, if so, the nature and size of the adjustment; and (c) adding or subtracting the adjustment (if any) to or from the institutional rate. (3) If there is any change to the percentage of the institutional rate, the Attorney-General may fix a new penalty interest rate to take account of the change and may do this without complying with subsection (2). S. 3 repealed by No. 58/1989 s. 3. * * * * * 4 Interest on moneys etc. where no rate contracted s. 4 In section 77 of the Principal Act for the words "maximum rate approved by the Australian Loan Council at the time judgment is entered or an order made for long-term borrowing for new public securities issued by semi-government authorities" there shall be substituted the expression "rate for the time being fixed under section 2 of the **Penalty Interest Rates Act 1983**". 5 Interest on debts or certain sums recovered s. 5 In section 78(1) of the Principal Act for the words "the maximum rate approved by the Australian Loan Council at the time the judgment is entered or the order made for long-term borrowing for new public securities issued by semi-government authorities" there shall be substituted the expression "the rate for the time being fixed under section 2 of the **Penalty Interest Rates Act 1983**". 6 Interest on actions for debt or damages In section 79A(1) of the Principal Act for the words "the maximum rate approved by the Australian Loan Council at the time the judgment is entered or the order made for long-term borrowing for new public securities issued by semi-government authorities" there shall be substituted the expression "the rate for the time being fixed under section 2 of the **Penalty Interest Rates Act 1983**". 7 Interest on solicitors' costs In section 88 of the Principal Act for the words "at the maximum rate then approved by the Australian Loan Council for long-term borrowing for new public securities issued by semi-government authorities" there shall be substituted the expression "at the rate for the time being fixed under section 2 of the **Penalty Interest Rates Act 1983**". 8 Interest on judgments s. 8 In section 161 of the Principal Act for the words "maximum rate approved by the Australian Loan Council at the time the judgment is entered or the order made for long-term borrowing for new public securities issued by semi-government authorities" there shall be substituted the expression "rate for the time being fixed under section 2 of the **Penalty Interest Rates Act 1983**". 9 Interest on judgments In section 73(4) of the **County Court Act 1958** for the words "maximum rate approved by the Australian Loan Council at the time judgment is entered or the order made for long-term borrowing for new public securities issued by semi-government authorities" there shall be substituted the expression "rate for the time being fixed under section 2 of the **Penalty Interest Rates Act 1983**". 10 Interest on judgments In section 86(4) of the **County Court Act 1958** for the words "maximum rate approved by the Australian Loan Council at the time the judgment is entered for long-term borrowing for new public securities issued by semi-government authorities" there shall be substituted the expression "rate for the time being fixed under section 2 of the **Penalty Interest Rates Act 1983**". 11 Interest on purchase money in arrears In the Third Schedule to the **Property Law Act 1958** in condition 4, for the words "maximum rate approved by the Australian Loan Council at the time of the default for long-term borrowing for new public securities issued by semi-government authorities" there shall be substituted the expression "rate for the time being fixed under section 2 of the **Penalty Interest Rates Act 1983**". 12 Interest on purchase money in arrears s. 12 In the Seventh Schedule to the **Transfer of Land Act 1958** in condition 4, for the words "maximum rate approved by the Australian Loan Council at the time of the default for long-term borrowing for new public securities issued by semi-government authorities" there shall be substituted the expression "rate for the time being fixed under section 2 of the **Penalty Interest Rates Act 1983**". 13 Interest on judgments and orders For section 50(4) of the **Magistrates' Courts Act 1971** there shall be substituted the following subsection: "(4) Every judgment debt shall carry interest at the rate for the time being fixed under section 2 of the **Penalty Interest Rates Act 1983** from the time the judgment is entered or order made and the amount of the interest shall be stated in the body of and may be levied under any warrant of distress or commitment issued for the enforcement of the judgment or order.". 14 Validation of certain orders for the payment of interest Every order made under the provisions of any of the enactments referred to in the foregoing provisions of this Act on or after 1 July 1983 and before the day on which this Act is assented to for the payment of interest at a rate not exceeding the maximum rate last approved by the Australian Loan Council for long-term borrowing for new public securities issued by semi-government authorities shall be and be taken to be a valid order for the payment of interest notwithstanding the cessation by the Australian Loan Council of approval of a maximum rate of interest for long-term borrowing for new public securities issued by semi-government authorities. 15 Re-opening of cases s. 15 Any judgment creditor who is aggrieved at the refusal or failure of any Court to make an order for the payment of interest under the provisions of any of the enactments referred to in the foregoing provisions of this Act because of the cessation by the Australian Loan Council of the approval of a maximum rate of interest for long-term borrowing for new public securities issued by semi-government authorities may without any further or other authority than the provisions of this section at any time apply to the Court for the making of such an order and the Court on any such application may in accordance with the provisions of that enactment make an order for the payment of interest at a rate not exceeding the rate of 15⋅8 per centum per annum. 16 Reference to maximum rate deemed to be fixed rate A reference in a contract, agreement, mortgage, lease or other instrument made or entered into before the date on which this Act receives the Royal Assent to the maximum rate approved by the Australian Loan Council for long-term borrowing for new public securities issued by semi-government authorities shall, unless the contrary intention appears, be deemed to be a reference to the rate for the time being fixed under section 2 of the **Penalty Interest Rates Act 1983**. S. 17 inserted by No. 34/2004 s. 8. 17 Validity of certain calculations of penalty interest s. 17 If, before the commencement of the **Appeal Costs and Penalty Interest Rates Acts (Amendment) Act 2004**— (a) a notice published in the Government Gazette purported to fix the penalty interest rate commencing on a date preceding the date of publication of the notice; and (b) penalty interest at the rate purported to have been fixed has been calculated from the date referred to in the notice— the calculation of interest from that date is not by that reason alone invalid. ENDNOTES Endnotes 1. General Information The **Penalty Interest Rates Act 1983** was assented on 22 November 1983 and came into operation on 1 July 1983: section 1(3). 1. Table of Amendments Endnotes This Version incorporates amendments made to the **Penalty Interest Rates Act 1983** by Acts and subordinate instruments. ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– **Penalty Interest Rates (Amendment) Act 1989, No. 58/1989** | Assent Date: | 22.8.89 | | --- | --- | | Commencement Date: | 22.8.89 | | Current State: | All of Act in operation | **Appeal Costs and Penalty Interest Rates Acts (Amendment) Act 2004, No. 34/2004** | Assent Date: | 8.6.04 | | --- | --- | | Commencement Date: | S. 8 on 9.6.04: s. 2 | | Current State: | This information relates only to the provision/s amending the **Penalty Interest Rates Act 1983** | ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 1. Explanatory Details Endnotes No entries at date of publication.