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Child Support Enforcement - Sarpy County Nebraska

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Servicemembers Civil Relief Act of 2003 Section 207 (a)<br />

Notwithstanding the above, when the obligated parent is an active duty member of the US<br />

Military, the interest rate shall be capped by federal law at 6.000%. See below for rules and<br />

restrictions on this.<br />

§207 (a) INTEREST RATE LIMITATION-<br />

(1) LIMITATION TO 6 PERCENT- An obligation or liability bearing interest at a rate in<br />

excess of 6 percent per year that is incurred by a servicemember, or the servicemember and<br />

the servicemember‘s spouse jointly, before the servicemember enters military service shall not<br />

bear interest at a rate in excess of 6 percent per year during the period of military service.<br />

(2) FORGIVENESS OF INTEREST IN EXCESS OF 6 PERCENT- Interest at a rate in<br />

excess of 6 percent per year that would otherwise be incurred but for the prohibition in<br />

paragraph (1) is forgiven<br />

(b) IMPLEMENTATION OF LIMITATION-<br />

(1) WRITTEN NOTICE TO CREDITOR- In order for an obligation or liability of a<br />

servicemember to be subject to the interest rate limitation in subsection (a), the servicemember<br />

shall provide to the creditor written notice and a copy of the military orders calling the<br />

servicemember to military service and any orders further extending military service, not later<br />

than 180 days after the date of the servicemember‘s termination or release from military service.<br />

(2) LIMITATION EFFECTIVE AS OF DATE OF ORDER TO ACTIVE DUTY- Upon<br />

receipt of written notice and a copy of orders calling a servicemember to military service, the<br />

creditor shall treat the debt in accordance with subsection (a), effective as of the date on which<br />

the servicemember is called to military service.<br />

. . .<br />

(d) INTEREST- As used in this section, the term `interest‘ includes service charges, renewal<br />

charges, fees, or any other charges (except bona fide insurance) with respect to an obligation or<br />

liability.<br />

Bowers v. Lens, 264 Neb. 465, 648 N.W.2d 294 (2002)<br />

A court of equity does not have discretion to withhold interest on decrees or<br />

judgments for the payment of money.<br />

Laschanzky v. Laschanzky, 246 Neb. 705, 523 N.W.2d 29 (1994)<br />

A court of equity does not have discretion to allow or withhold interest in cases<br />

where interest is recoverable as a matter of right.<br />

State on Behalf of Kayla T. v. Risinger, 273 Neb. 694, 731 N.W.2d 892 (2007)<br />

The district court abused its discretion in ordering the retroactive child support to be paid<br />

in future monthly installments. Thus, we conclude that the order should be modified and<br />

judgment entered for the full amount due, with interest to accrue on the full amount from the<br />

date of judgment.<br />

Intervention by the State<br />

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