[Code of Federal Regulations]
[Title 20, Volume 3]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR606.32]

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                      TITLE 20--EMPLOYEES' BENEFITS
 
 CHAPTER V--EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR
 
PART 606--TAX CREDITS UNDER THE FEDERAL UNEMPLOYMENT TAX ACT; ADVANCES UNDER TITLE XII OF THE SOCIAL SECURITY ACT--Table of Contents
 
                     Subpart D--Interest on Advances
 
Sec. 606.32  Types of advances subject to interest.

    (a) Payment of interest. Except as otherwise provided in paragraph 
(b) of this section each State shall pay interest on any advance made to 
such State under title XII of the Social Security Act.
    (b) Cash flow loans. Advances repaid in full prior to October 1 of 
the calendar year in which made are deemed cash flow loans and shall be 
free of interest; provided, that the State does not receive an 
additional advance after September 30 of the same calendar year. If such 
additional advance is received by the State, interest on the completely 
repaid earlier advance(s) shall be due and payable not later than the 
day following the date of the first such additional advance. The 
administrator of the State agency shall notify the Secretary of Labor no 
later than September 10 of those loans deemed to be cash flow loans and 
not subject to interest. This notification shall include the date and 
amount of each loan made in January through September and a copy of 
documentation sent to the Secretary of the Treasury requesting loan 
repayment transfer(s) from the State's account in the Unemployment Trust 
Fund to the Federal unemployment account in such Fund.

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