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Maine Alliance for Road Associations

Penalty Limits

  • 02 Jul 2025 4:28 AM
    Quote
    Message # 13516580
    Anonymous member

    In the formation of a Statutory Road Association, is there a limit to the interest penalty on delinquent road maintenance fees (contained in the by-laws)? Our membership has suggested an 8% per month penalty on a currently owed $400. Is that too excessive?
  • 03 Jul 2025 6:15 AM
    Quote
    Reply # 13517029 on 13516580
    Anonymous member (Administrator)

    The interest rate needs to be perceived by the courts to be fair and equitable to be allowed to stand. An interest rate in the by-laws so voted by the owners probably would stand  Our road association uses the interest-rate set at the town for delinquent taxes. Check out our Resources Page for an example. 

    Last modified: 03 Jul 2025 7:07 AM | Anonymous member (Administrator)

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