Code Section

Civil Code - CIV

DIVISION 4. GENERAL PROVISIONS [3274 - 9566]

  ( Heading of Division 4 amended by Stats. 1988, Ch. 160, Sec. 16. )
  

PART 1. RELIEF [3274 - 3428]

  ( Part 1 enacted 1872. )
  

TITLE 2. COMPENSATORY RELIEF [3281 - 3360]

  ( Title 2 enacted 1872. )
  

CHAPTER 1. Damages in General [3281 - 3296]

  ( Chapter 1 enacted 1872. )
  

ARTICLE 2. Interest as Damages [3287 - 3291]
  ( Article 2 enacted 1872. )

  
3289.  

(a) Any legal rate of interest stipulated by a contract remains chargeable after a breach thereof, as before, until the contract is superseded by a verdict or other new obligation.

(b) If a contract entered into after January 1, 1986, does not stipulate a legal rate of interest, the obligation shall bear interest at a rate of 10 percent per annum after a breach.

For the purposes of this subdivision, the term contract shall not include a note secured by a deed of trust on real property.

(Amended by Stats. 1986, Ch. 176, Sec. 1. Effective June 23, 1986.)