California Department of Transportation
 

Interest Rates

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Rates of Interest on Orders for Possession in Eminent Domain Actions

Sections 1268.310 through 1268.360 of the Code of Civil Procedure address the computation of interest in eminent domain and inverse condemnation cases. The method and the rates prescribed are also applicable to rights of entry. The statutes provide that the rate of interest on eminent domain awards shall be the apportionment rate calculated by the Controller as the rate of earnings by the Surplus Money Investment Fund. The rate of interest payable for each period, or fraction thereof, for which interest is due is the apportionment rate for the immediately preceding period (for example, February of 2006 would use the Surplus Money rate for October to December 2005).

The apportionment rate is calculated by the Controller on a quarterly basis, prior to 2004 it was calculated on a semi-annual basis. Each rate is based on the average of rates earned by the State on surplus money for the applicable quarter or semiannual period. The apportionment rate has a compounding factor built into it by the Controller.

The law provides that each district office of the Department of Transportation shall quote the apportionment rate to any person upon request. The State Controller requires some time to calculate the rate for each period; rates are generally available for the preceding period about the 16th of the following month. These rates are also available directly on the Controller’s web site at  http://www.sco.ca.gov/Files-ARD/smifrate.pdf

Following is an example indicating which rates to use when an Order for Possession has, say, an effective date of February 5, 2003, and a Final Order of Condemnation recorded on April 30, 2004. The applicable rate of interest is selected from the table for each three month period. (See the following compilation of rates.)

Following is an example indicating which rates to use when an Order for Possession has, say, an effective date of February 5, 1984, and a Final Order of Condemnation recorded on March 31, 1985. The applicable rate of interest is selected from the table for each three month period. (See the following compilation of three month rates.)

Under this example the total settlement is the initial settlement plus three interest calculations, each of which is added separately to the settlement prior to calculating the next period (or fraction thereof). Adding earned interest in this manner prior to the next computation results in compounding of interest. Using these dates and rates, a calculation using a settlement of $100,000, follows as an example of computing interest.


SAMPLE CALCULATION OF INTEREST

Settlement $100,000

Period of Possession 2-5-03 to 4-30-04

 

 

Rate

February 5 to June 30,2003

145 Days

2.853

July 1 to December 31, 2003

184 Days

1.859

January 1 to March 31, 2004   (Quarterly periods beginning 2004)

91 Days

1.590

April 1 to April 30, 2004

30 Days

1.467

(2004 - Leap Year - 366 Days)

 

 

 

 

 

 

Principal carried forward

 

Rate for period

 

# days period

 

# days in year

 

Interest earned

Step 1

$100,000.00

x

.02468

x

145

365

=

$980.44

Step 2

$100,980.44

x

.01859

x

184

365

=

$946.33

Step 3

$101,926.77

x

.01590

x

91

366

=

$402.94

Step 4

$102,329.71

x

.01467

x

30

366

=

$123.05

 

 

 

 

 

Total interest:

 

$2,452.76

Recapitulation

Settlement (Principal)

$100,000.00

Total Interest

    2,452.76

Total Settlement

$102,452.76

 


 

SURPLUS MONEY INVESTMENT FUND RATES FOR PERIOD
("Apportionment Rate")

(Date, From State Controller, Rate Paid By State)

Period Ending

Rate Calculated by SCO

Rate paid by State

12/31/2012

0.316%

0.349%

9/30/2012

0.349%

0.361%

6/30/2012

0.361%

0.374%

3/31/2012

0.374%

0.378%

12/31/2011

0.378%

0.377%

9/30/2011

0.377%

0.480%

6/30/2010

0.480%

0.508%

3/31/2010

0.508%

0.456%

12/31/2010

0.456%

0.503%

9/30/2010

0.503%

0.559%

6/30/2010

0.559%

0.551%

3/31/2010

0.551%

0.594%

12/31/2009

0.594%

0.889%

9/31/2009

0.889%

1.512%

6/30/2009

1.512%

1.903%

3/31/2009

1.903%

2.533%

12/31/2008

2.533%

2.769%

9/30/2008

2.769%

3.108%

6/30/2008

3.108%

4.174%

3/31/2008

 4.174%

4.955%

12/31/2007

4.955%

5.236%

9/30/2007

5.236%

5.235%

6/30/2007

5.235%

5.172%

3/31/2007

5.172%

5.106%

12/31/2006

5.106%

4.926%

9/30/2006

4.926%

4.529%

6/30/2006

4.529%

4.032%

3/31/2006

4.032%

3.626%

12/31/2005

3.626%

3.178%

9/30/2005

3.178%

2.851%

6/30/2005

2.851%

2.373%

3/31/2005

2.373%

1.995%

12/31/2004

1.995%

1.665%

9/30/2004

1.665%

1.441%

6/30/2004

1.441%

1.467%

3/31/2004

1.467%

1.590%

Period Ending

Rate Calculated by SCO

Rate paid by State

12/31/2003

1.590%

1.859%

6/30/2003

1.859%

2.468%

12/31/2002

2.468%

2.853%

6/30/2002

2.853%

3.993%

12/31/2001

3.993%

5.731%

6/30/2001

5.731%

6.493%

12/31/2000

6.493%

5.986%

6/30/2000

5.986%

5.341%

12/31/1999

5.341%

5.134%

6/30/1999

5.134%

5.553%

12/31/1998

5.553%

5.674%

6/30/1998

5.674%

5.690%

12/31/1997

5.690%

5.594%

6/30/1997

5.594%

5.572%

Period Ending

Rate Calculated by SCO

Rate paid by State

12/31/1996

5.572%

5.560%

6/30/1996

5.560%

5.827%

12/31/1995

5.827%

5.871%

6/30/1995

5.871%

5.153%

12/31/1994

5.153%

4.354%

6/30/1994

4.354%

4.390%

12/31/1993

4.390%

4.605%

6/30/1993

4.605%

4.821%

12/31/1992

4.821%

5.649%

6/30/1992

5.649%

6.761%

12/31/1991

6.761%

7.674%

6/30/1991

7.674%

8.339%

12/31/1990

8.339%

8.520%

6/30/1990

8.520%

8.784%

Period Ending

Rate Calculated by SCO

Rate paid by State

12/31/1989

8.784%

8.956%

6/30/1989

8.956%

8.336%

12/31/1988

8.336%

7.946%

6/30/1988

7.946%

7.772%

12/31/1987

7.772%

7.220%

6/30/1987

7.220%

7.655%

12/31/1986

7.655%

8.701%

6/30/1986

8.701%

9.497%

12/31/1985

9.497%

10.191%

6/30/1985

10.191%

11.475%

12/31/1984

11.475%

10.605%

6/30/1984

10.605%

10.120%

12/31/1983

10.120%

9.849%

6/30/1983

9.849%

11.262%

Period Ending

Rate Calculated by SCO

Rate paid by State

12/31/1982

11.262%

11.931%

6/30/1982

11.931%

12.188%

12/31/1981

12.188%

11.488%

6/30/1981

11.488%

10.257%

12/31/1980

10.257%

11.376%

6/30/1980

11.376%

9.671%

12/31/1979

9.671%

8.979%

6/30/1979

8.979%

8.096%

12/31/1978

8.096%

7.174%

6/30/1978

7.174%

6.182%

12/31/1977

6.182%

5.788%

6/30/1977

5.788%

6.021%

12/31/1976

6.021%

6.048%

6/30/1976

6.048%

6.791%

Period Ending

Rate Calculated by SCO

Rate paid by State

12/31/1975

6.791%

7.089%

6/30/1975

7.089%

10.315%

12/31/1974

10.315%

9.222%

6/30/1974

9.222%

8.717%

12/31/1973

8.717%

6.023%

6/30/1973

6.023%

4.977%

12/31/1972

4.977%

4.477%

6/30/1972

4.477%

5.580%

12/31/1971

5.580%

5.154%

6/30/1971

5.154%

7.696%

12/31/1970

7.696%

7.072%

6/30/1970

7.072%

6.389%

12/31/1969

6.389%

6.520%

6/30/1969

6.520%

5.540%

Period Ending

Rate Calculated by SCO

Rate paid by State

12/31/1968

5.540%

5.333%

6/30/1968

5.333%

4.744%

12/31/1967

4.744%

4.815%

6/30/1967

4.815%

5.057%

12/31/1966

5.057%

4.538%

6/30/1966

4.538%

4.184%

12/31/1965

4.184%

3.968%

6/30/1965

3.968%

3.777%

12/31/1964

3.777%