[Code of Federal Regulations]
[Title 33, Volume 3]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 33CFR241.6]

[Page 341-342]
 
                TITLE 33--NAVIGATION AND NAVIGABLE WATERS
 
 CHAPTER II--CORPS OF ENGINEERS, DEPARTMENT OF THE ARMY, DEPARTMENT OF 
                                 DEFENSE
 
PART 241_FLOOD CONTROL COST-SHARING REQUIREMENTS UNDER THE ABILITY TO PAY 
 
Sec.  241.6  Deferred payments for certain qualifying projects.

    (a) Whenever a project's Eligibility Factor exceeds zero, the 
project sponsor will be permitted to defer a portion of its share of 
flood control costs. The maximum allowable amount deferred equals the 
total non-Federal share less (for structural projects) five percent of 
total project costs and less (for all projects) any amounts for LERRD 
paid for or acquired by the sponsor prior to the time the PCA is signed. 
If for example, the non-Federal share of a structural project = 35.0 
percent (after the ability to pay adjustment, if any) of which 10 
percent is LERRD already paid for by the local sponsor, the maximum 
allowable amount to be deferred = 20 percent of project flood control 
costs (35 less the 5 percent cash requirements, less the 10 percent 
LERRD already acquired). Deferred payments at the option of the sponsor 
will be allowed regardless of the outcome of the benefits test described 
in Sec.  241.5(a) whenever the Eligibility Factor exceeds zero.
    (b) When EF = 1, the project sponsor may defer as much as 
the maximum allowable amount as described in Sec.  241.6(a).

[[Page 342]]

    (c) When 0 < EF < 1, the sponsor may defer a fraction of the maximum 
allowable amount described in Sec.  241.6(a), where the fraction equals 
the Eligibility Factor expressed to three decimal places. Continuing the 
example described in Sec.  241.6(a), if EF = .712, total allowed 
deferral equals .712 x 20 percent = 14.2 percent of total project costs.
    (d) The deferred payment can be made in equal installments over any 
period of time selected by the non-Federal sponsor, provided that all 
repayments are made between the end of construction and thirty years 
thereafter. The amount repaid shall include interest during the 
repayment period as well as interest for the appropriate portion of the 
construction period for any amounts deferred prior to the end of 
construction. The rate of interest shall be determined in accordance 
with the provisions of section 106 of Pub. L. 99-662, 33 U.S.C. 2216.

[54 FR 40581, Oct. 2, 1989, as amended at 60 FR 5134, Jan. 26, 1995]