A private subcontract sets interest on late payment at 18 percent per annum, which is higher than the statutory rate that year. What does the obligee collect?
Correct Answer
C) The contract rate, since that is the greater of the two
Section 715.12(6)(a) provides that during the period interest accrues the rate is the s. 55.03 rate plus 12 percent per annum, or the rate specified in the contract, whichever is greater, and that a person is not entitled to receive both the contract interest and the statutory interest.
Why This Is the Correct Answer
Section 715.12(6)(a) provides that during the period interest accrues the rate is the s. 55.03 rate plus 12 percent per annum, or the rate specified in the contract, whichever is greater, and that a person is not entitled to receive both the contract interest and the statutory interest.
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