Interest

When people who held Treasury bills, Treasury notes or bonds got a notice from the government about a new program called "Treasury Direct," not everyone was thrilled. The government will no longer be sending investors checks for their interest or principal on securities sold from now on. Instead, investors will have to designate a financial institution, and the government will directly deposit any monies due into their accounts.

Comprehensive Care Corp. said Tuesday that some of its bondholders are demanding immediate interest payments on $9.54 million worth of corporate debt. The bondholders filed a so-called notice of acceleration, which would require Comprehensive Care to pay both the principal and accrued interest on its 7.5% convertible bonds, which are set to mature in 2010. Company President Chriss Street said that interest payments, due Oct. 31, have not been made.

Whether Ross Newhan realizes it or not, his July 9 notebook is a sad but true commentary on the state of baseball today. The truth is, the controversy and gossip surrounding the sport is often more interesting than the game itself. RON PRICE Los Angeles

Money invested by the county treasurer's office earned an all-time high of $245 million in interest during the fiscal year that ended June 30, according to a recently released report. The county's investments were so bullish this year, they even outpaced earnings by the state treasury, which earned an 8.20% average rate of interest; the county earned 8.9%.

United States Shoe Corp. lost a U.S. Supreme Court appeal Tuesday that it called a test case for thousands of companies seeking $700 million in interest on the refund of a federal harbor tax on exports. The company said at least 7,500 companies sought refunds after the justices struck down the federal harbor maintenance tax on exported goods in 1998.

Two squads of California lawyers unpacked their pin-stripe suits and legal briefs here Monday and prepared to do battle this morning over as much as $180 million in interest due from the 1983 sale of stock in Irvine Co. The confrontation is the latest chapter in a seven-year legal fight that pits Joan Irvine Smith, whose grandfather founded the sprawling Irvine Ranch, and Donald L. Bren, the Newport Beach billionaire who now controls the giant real estate concern.

In a ruling on a small point of law, a state court referee made a decision here Tuesday that could save the Irvine Co. up to $80 million and bring the seven-year dispute between chairman Donald L. Bren and heiress Joan Irvine Smith to a close. Referee Robert B. Webster said he would deny Smith's motion that the company pay her 12% interest on a $149-million award for company stock sold by her and her mother, Athalie Clarke. Interest on the award will be calculated for a period of seven years.

Online lender Quicken Loans Inc. sued California in federal court Tuesday, challenging a state law that prevents lenders from charging interest until the day before a mortgage is officially recorded. The Livonia, Mich., company claimed federal law, which allows interest to be charged as soon as loan funds go into escrow, takes precedence over the state statute. It was the same argument that Wells Fargo & Co.

Once a year, New York renters get a check from their landlords for interest on their security deposits. It's usually not much money--"about 4% a year now, or $35 to $40 for me," says one East Side resident. "For so little, you'd hardly choose another city if New York didn't have the law, but it's a welcome change that it earns interest for me now instead of the landlord." In California, there is an estimated $1.

Sorry to rain on James Flanigan's parade. His "Economy Reviving Without Congress' Help" [Dec. 23] addresses borrowing rates for real estate, cars and such. What about interest rates for bank investments? Soon, bank investors will be paying a safe-keeping charge for their savings. Alan Greenspan's 11 cuts in short-term rates have slashed many investors' incomes by more than half. Call your local bank and ask about a certificate of deposit. It's too late to curb the "Great Greenspan."