California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 1 — Relief, Title 2 — Compensatory Relief, Chapter 1 — Damages in General, Article 2 — Interest as Damages, Section 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rate of interest stipulated by a contract remains chargeable after a breach thereof, as before, until the contract is superseded by a verdict or other new obligation.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.
Notes
Sets a contract’s stipulated legal interest rate to continue after breach until a verdict or other new obligation supersedes the contract. For contracts entered after January 1, 1986, that state no legal rate, the post-breach rate is 10 percent annually; that default-rate rule excludes a note secured by a deed of trust on real property.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 3289 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-1/title-2/chapter-1/article-2/section-3289