US Laws, Codes, Statutes & Cases

From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
  January 7, 2003 and December 19, 2003]
[CITE: 31USC3717]

 
                       TITLE 31--MONEY AND FINANCE
 
                   SUBTITLE III--FINANCIAL MANAGEMENT
 
                           CHAPTER 37--CLAIMS
 
          SUBCHAPTER II--CLAIMS OF THE UNITED STATES GOVERNMENT
 
Sec. 3717. Interest and penalty on claims

    (a)(1) The head of an executive, judicial, or legislative agency 
shall charge a minimum annual rate of interest on an outstanding debt on 
a United States Government claim owed by a person that is equal to the 
average investment rate for the Treasury tax and loan accounts for the 
12-month period ending on September 30 of each year, rounded to the 
nearest whole percentage point. The Secretary of the Treasury shall 
publish the rate before November 1 of that year. The rate is effective 
on the first day of the next calendar quarter.
    (2) The Secretary may change the rate of interest for a calendar 
quarter if the average investment rate for the 12-month period ending at 
the close of the prior calendar quarter, rounded to the nearest whole 
percentage point, is more or less than the existing published rate by 2 
percentage points.
    (b) Interest under subsection (a) of this section accrues from the 
date--
        (1) on which notice is mailed after October 25, 1982, if notice 
    was first mailed before October 25, 1982; or
        (2) notice of the amount due is first mailed to the debtor at 
    the most current address of the debtor available to the head of the 
    executive or \1\ legislative agency, if notice is first mailed after 
    October 24, 1982.
---------------------------------------------------------------------------
    \1\ So in original. Probably should be ``, judicial, or''.

    (c) The rate of interest charged under subsection (a) of this 
section--
        (1) is the rate in effect on the date from which interest begins 
    to accrue under subsection (b) of this section; and
        (2) remains fixed at that rate for the duration of the 
    indebtedness.

    (d) Interest under subsection (a) of this section may not be charged 
if the amount due on the claim is paid within 30 days after the date 
from which interest accrues under subsection (b) of this section. The 
head of an executive, judicial, or legislative agency may extend the 30-
day period.
    (e) The head of an executive, judicial, or legislative agency shall 
assess on a claim owed by a person--
        (1) a charge to cover the cost of processing and handling a 
    delinquent claim; and
        (2) a penalty charge of not more than 6 percent a year for 
    failure to pay a part of a debt more than 90 days past due.

    (f) Interest under subsection (a) of this section does not accrue on 
a charge assessed under subsection (e) of this section.
    (g) This section does not apply--
        (1) if a statute, regulation required by statute, loan 
    agreement, or contract prohibits charging interest or assessing 
    charges or explicitly fixes the interest or charges; and
        (2) to a claim under a contract executed before October 25, 
    1982, that is in effect on October 25, 1982.

    (h) In conformity with standards prescribed jointly by the Attorney 
General, the Secretary of the Treasury, and the Comptroller General, the 
head of an executive, judicial, or legislative agency may prescribe 
regulations identifying circumstances appropriate to waiving collection 
of interest and charges under subsections (a) and (e) of this section. A 
waiver under the regulations is deemed to be compliance with this 
section.
    (i)(1) The head of an executive, judicial, or legislative agency may 
increase an administrative claim by the cost of living adjustment in 
lieu of charging interest and penalties under this section. Adjustments 
under this subsection will be computed annually.
    (2) For the purpose of this subsection--
        (A) the term ``cost of living adjustment'' means the percentage 
    by which the Consumer Price Index for the month of June of the 
    calendar year preceding the adjustment exceeds the Consumer Price 
    Index for the month of June of the calendar year in which the claim 
    was determined or last adjusted; and
        (B) the term ``administrative claim'' includes all debt that is 
    not based on an extension of Government credit through direct loans, 
    loan guarantees, or insurance, including fines, penalties, and 
    overpayments.

(Added Pub L. 97-452, Sec. 1(16)(A), Jan. 12, 1983, 96 Stat. 2472; 
amended Pub. L. 104-134, title III, Sec. 31001(c)(1), (g)(1)(C), (q), 
Apr. 26, 1996, 110 Stat. 1321-359, 1321-363, 1321-372.)

                                          Historical and Revision Notes
----------------------------------------------------------------------------------------------------------------
           Revised Section                   Source (U.S. Code)                Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
3717(a)..............................  31 App.:952(e)(1) (1st-3d       July 19, 1966, Pub. L. 89-508, 80 Stat.
                                        sentences).                     308, Sec.  3(e)(1) (1st-3d sentences),
                                                                        (2)-(7); added Oct. 25, 1982, Pub. L. 97-
                                                                        365, Sec.  11, 96 Stat. 1755.
3717(b), (c).........................  31 App.:952(e)(5).
3717(d)..............................  31 App.:952(e)(6).
3717(e)..............................  31 App.:952(e)(2).
3717(f)..............................  31 App.:952(e)(7).
3717(g)(1)...........................  31 App.:952(e)(3) (1st
                                        sentence).
3717(g)(2)...........................  31 App.:952(e)(4).
3717(h)..............................  31 App.:952(e)(3) (2d, last
                                        sentences).
----------------------------------------------------------------------------------------------------------------

    In subsection (a), the words ``percentage point'' and ``percentage 
points'' are substituted for ``per centum'' for clarity.
    In subsections (a)(1) and (e), the words ``Except as provided in 
paragraph (3)'' are omitted as surplus.
    In subsection (a)(2), the words ``for a calendar quarter'' are 
substituted for ``quarterly'', and the words ``prior calendar quarter'' 
are substituted for ``that calendar quarter'', for clarity.
    In subsection (b), before clause (1), the words ``Subject to 
paragraph (6)'' and ``except as provided in subparagraph (B)'' are 
omitted as surplus. In clause (2), the words ``on the claim'' are 
omitted as surplus. The words ``if notice is first mailed after October 
24, 1982'' are added for clarity.
    In subsection (c), the words ``on a claim'' are omitted as surplus.
    In subsection (g)(1), the words ``applicable'' and ``either'' are 
omitted as surplus. The word ``assessing'' is added for clarity. The 
words ``that apply to claims involved'' are omitted as surplus.
    In subsection (h), the words ``under this section'' are added for 
clarity.


                               Amendments

    1996--Subsec. (a)(1). Pub. L. 104-134, Sec. 31001(c)(1), which 
directed that this section be amended by substituting ``the head of an 
executive, judicial, or legislative agency'' for ``the head of an 
executive or legislative agency'' wherever appearing, was executed by 
substituting ``The head of an executive, judicial, or legislative 
agency'' for ``The head of an executive or legislative agency'', to 
reflect the probable intent of Congress.
    Subsecs. (d), (e). Pub. L. 104-134, Sec. 31001(c)(1), which directed 
that this section be amended by substituting ``the head of an executive, 
judicial, or legislative agency'' for ``the head of an executive or 
legislative agency'' wherever appearing, was executed by substituting 
``The head of an executive, judicial, or legislative agency'' for ``The 
head of an executive or legislative agency'', to reflect the probable 
intent of Congress.
    Subsec. (h). Pub. L. 104-134, Sec. 31001(c)(1), (g)(1)(C), inserted 
``, the Secretary of the Treasury,'' after ``Attorney General'' and 
substituted ``the head of an executive, judicial, or legislative 
agency'' for ``the head of an executive or legislative agency''.
    Subsec. (i). Pub. L. 104-134, Sec. 31001(q), added subsec. (i).

                  Section Referred to in Other Sections

    This section is referred to in sections 3701, 3711 of this title; 
title 5 section 5514; title 7 sections 2371, 7753, 7759, 8311; title 10 
section 2739; title 15 section 80a-24; title 21 section 136a; title 22 
section 2671; title 26 section 6103; title 42 sections 404, 1383.