[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: 49CFR92.35]

[Page 729]
 
                        TITLE 49--TRANSPORTATION
 
          Subtitle A--Office of the Secretary of Transportation
 
PART 92_RECOVERING DEBTS TO THE UNITED STATES BY SALARY OFFSET--Table of Contents
 
Sec.  92.35  Interest, penalties and administrative costs.

    (a) Where a DOT creditor operating element (see Sec.  92.5(g)) is 
the creditor, it shall charge interest on an outstanding debt at the 
rate published by the Secretary of the Treasury in accordance with 31 
U.S.C. 3717. The rate of interest assessed shall be the rate of the 
current value of funds to the United States Treasury (i.e., the Treasury 
tax and loan account rate), as prescribed and published by the Secretary 
of the Treasury in the Federal Register and the Treasury Financial 
Manual Bulletins annually or quarterly, in accordance with 31 U.S.C. 
3717. The DOT creditor operating element shall charge a penalty of six 
percent a year, in addition to interest, on any portion of a debt that 
is more than 90 days past due. It shall assess administrative charges to 
cover additional costs incurred in processing and handling the debt 
beyond the payment due date. The imposition of interest, penalties and 
administrative charges is made in accordance with 31 U.S.C. 3717 and 4 
CFR 102.13.
    (b) Interest on debt shall begin to accrue on the date on which the 
debtor is first sent or delivered notice of the debt and of the interest 
requirements or, in the case of advance billings, on the calendar date 
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 charged shall be the rate in effect on 
the date from which interest begins to accrue, and shall remain fixed 
for the duration of the indebtedness.
    (c) A DOT creditor operating element shall waive the monthly 
interest on debt that is paid within 30 calendar days after the date on 
which interest began to accrue.
    (d) A DOT creditor operating element may waive interest, penalties 
and/or administrative charges if it finds that:
    (1) The debtor is unable to pay any significant sum toward the claim 
within a reasonable period of time;
    (2) Collection of interest, penalties or administrative charges will 
jeopardize collection of the principal of the debt; or
    (3) It is otherwise in the best interest of the United States, 
including the situation where an offset or installment payment agreement 
is in effect.