[Code of Federal Regulations]
[Title 49, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR89.23]

[Page 718]
 
                        TITLE 49--TRANSPORTATION
 
          Subtitle A--Office of the Secretary of Transportation
 
PART 89_IMPLEMENTATION OF THE FEDERAL CLAIMS COLLECTION ACT--Table of Contents
 
                     Subpart B_Collection of Claims
 
Sec.  89.23  Interest, late payment penalties, and collection charges.

    (a) DOT shall charge interest on an outstanding debt at the Treasury 
Current Value of Funds Rate published by the Secretary of the Treasury 
in accordance with 31 U.S.C. 3717 and 4 CFR 102.13(c), unless DOT 
determines that a higher rate is necessary to protect the interests of 
the United States. DOT shall charge a late payment penalty at a rate of 
six percent a year on any portion of a debt that is more than 90 days 
past due. DOT shall also assess administrative charges to cover 
additional cost incurred in processing and handling the debt beyond the 
payment due date. The imposition of interest, collection charges, and 
late payment penalty charges shall be made in accordance with 31 U.S.C. 
3717, 4 CFR 102.13 (see Sec.  89.3(c) regarding payment of such charges 
by Federal, state and local government agencies).
    (b) Interest on debt shall begin to accrue on the date on which the 
debtor is mailed or delivered notice of the debt and the interest 
requirements or, in the case of advance billings, on the calendar day 
following the specified due date of the debt, provided the advance 
billing gives notice of the interest requirements for late payment. 
Interest on the debt shall continue to accrue until payment is received. 
Interest shall be calculated only on the principal of the debt (simple 
interest). The rate of interest assessed shall be the rate in effect on 
the date from which interest begins to accrue, and will remain fixed for 
the duration of the indebtedness. The rate of interest assessed will 
generally be the Treasury Current Value of Funds Rate.
    (c) The Department shall waive interest on debt that is paid within 
30 calendar days after the date on which interest began to accrue.
    (d) Collection charges on debt shall be computed to cover the cost 
of processing and handling the delinquent debt. It shall be either the 
actual cost to process the particular delinquent debt to which it is 
applied, or operating elements may set the amount of such monthly charge 
by cost analysis establishing the average of actual additional costs 
incurred by the operating element in processing similar debts. 
Collection charges may also include the expense of obtaining credit 
reports and of using a professional debt collection contractor.
    (e) DOT may waive interest, collection charges, or late payment 
penalty charges if it finds that:
    (1) The debtor would be eligible for compromise under standards set 
forth in 4 CFR 103.2 with regard to the amount of the debt;
    (2) Collection of interest, administrative charges, or penalties 
will jeopardize collection of the principal of the debt; or
    (3) It is otherwise in the best interests of the United States, 
including the situation in which an offset or installment payment 
agreement is in effect.