[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR205.28]

[Page 36]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 205--RULES AND PROCEDURES FOR EFFICIENT FEDERAL-STATE FUNDS TRANSFERS--Table of Contents
 
Subpart A--Rules Applicable to Federal Assistance Programs Included in a 
                        Treasury-State Agreement
 
Sec. 205.28  How are interest payments exchanged?

    (a) We offset the adjusted total State interest liability and the 
adjusted total Federal interest liability for each State to determine 
the net interest payable to or from each specific State. The payment of 
net interest and any Interest Calculation Costs, as set forth in 
Sec. 205.27, for the most recently completed fiscal year must occur no 
later than March 31. We will notify a State of the final net interest 
liability. A State must submit a claim to receive payment.
    (b) A State may appeal a decision by us on interest liabilities and 
interest calculation cost claims in accordance with Sec. 205.31.
    (c) If a State appeals the amount of interest payable in accordance 
with the provisions of Sec. 205.31, payment must occur by March 31 for 
any portions not subject to the appeal.
    (d) The Federal government will not be liable for interest on any 
payment of interest to a State.

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