CHAPTER 202
S.P. 401 - L.D. 1296
An Act to Amend the Maine Probate Code to Eliminate Interest on Claims of Creditors of Insolvent Estates
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 18-A MRSA §3-806, sub-§(d), as enacted by PL 1979, c. 540, §1, is amended to read:
(d) Unless otherwise provided in any judgment in another court entered against the personal representative, allowed claims bear prejudgment interest at the legal rate specified in Title 14, section 1602, subsection 1, paragraph A for the period commencing 60 days after the time for original presentation of the claim has expired unless based on a contract making a provision for interest, in which case they bear interest in accordance with that provision.
(1) Interest may not accrue on any allowed claims, however allowed, against an insolvent estate, except to the extent that insurance coverage or other nonprobate assets are available to pay the claim in full. This paragraph is effective for estates of decedents who die on or after October 1, 1997.
(2) To the extent that an allowed claim against an insolvent estate is secured by property, the value of which, as determined under section 3-809, is greater than the amount of the claim, the holder of the claim may receive interest on the principal amount of the claim and any reasonable fees, costs or charges provided for under an agreement under which the claim arose. This paragraph is effective for estates of decedents who die on or after October 1, 1997.
Effective September 19, 1997, unless otherwise indicated.
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