Collection Actions: 6.7.2.2.1 Significance of the contract rate versus the legal rate
The question of whether the rate set forth in the postjudgment interest statute can be overridden by a contract term specifying a different rate can have significant consequences. For some business transactions and prime mortgage loans, the contract rate may be lower than the legal rate, and on a large loan even a reduction of a few points can make a big difference.256