Goto Section: 1.1936 | 1.1941 | Table of Contents
FCC 1.1940
Revised as of October 2, 2015
Goto Year:2014 |
2016
§ 1.1940 Assessment.
(a) Except as provided in paragraphs (g), (h), and (i) of this section or
§ 1.1941, the Commission shall charge interest, penalties, and administrative
costs on debts owed to the United States pursuant to 31 U.S.C. 3717. The
Commission will mail, hand-deliver, or use other forms of transmission,
including facsimile telecopier service, a written notice to the debtor, at
the debtor's CORES contact address (see section 1.8002(b)) explaining the
Commission's requirements concerning these charges except where these
requirements are included in a contractual or repayment agreement, or
otherwise provided in the Commission's rules, as may be amended from time to
time. These charges shall continue to accrue until the debt is paid in full
or otherwise resolved through compromise, termination, or waiver of the
charges. This provision is not intended to modify or limit the terms of any
contract, note, or security agreement from the debtor, or to modify or limit
the Commission's rights under its rules with regard to the notice or the
parties' agreement to waive notice.
(b) The Commission shall charge interest on debts owed the United States as
follows:
(1) Interest shall accrue from the date of delinquency, or as otherwise
provided by the terms of any contract, note, or security agreement,
regulation, or law.
(2) Unless otherwise established in a contract, note, or security agreement,
repayment agreement, or by statute, the rate of interest charged shall be
the rate established annually by the Treasury in accordance with 31 U.S.C.
3717. Pursuant to 31 U.S.C. 3717, an agency may charge a higher rate of
interest if it reasonably determines that a higher rate is necessary to
protect the rights of the United States. The agency should document the
reason(s) for its determination that the higher rate is necessary.
(3) The rate of interest, as initially charged, shall remain fixed for the
duration of the indebtedness. When a debtor defaults on a repayment
agreement and seeks to enter into a new agreement, the agency may require
payment of interest at a new rate that reflects the current value of funds
to the Treasury at the time the new agreement is executed. Interest shall
not be compounded, that is, interest shall not be charged on interest,
penalties, or administrative costs required by this section. If, however, a
debtor defaults on a previous repayment agreement, charges that accrued but
were not collected under the defaulted agreement shall be added to the
principal under the new repayment agreement.
(c) The Commission shall assess administrative costs incurred for processing
and handling delinquent debts. The calculation of administrative costs may
be based on actual costs incurred or upon estimated costs as determined by
the Commission. Commission administrative costs include the personnel and
service costs (e.g., telephone, copier, and overhead) to notify and collect
the debt, without regard to the success of such efforts by the Commission.
(d) Unless otherwise established in a contract, repayment agreement, or by
statute, the Commission will charge a penalty, pursuant to 31 U.S.C.
3717(e)(2), currently not to exceed six percent (6%) a year on the amount
due on a debt that is delinquent for more than 90 days. This charge shall
accrue from the date of delinquency. If the rate permitted under 31 U.S.C.
3717 is changed, the Commission will apply that rate.
(e) The Commission may increase an administrative debt by the cost of living
adjustment in lieu of charging interest and penalties under this section.
Administrative debt includes, but is not limited to, a debt based on fines,
penalties, and overpayments, but does not include a debt based on the
extension of Government credit, such as those arising from loans and loan
guaranties. The cost of living adjustment is 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 debt was determined or last adjusted. Increases
to administrative debts shall be computed annually. Agencies should use this
alternative only when there is a legitimate reason to do so, such as when
calculating interest and penalties on a debt would be extremely difficult
because of the age of the debt.
(f) When a debt is paid in partial or installment payments, amounts received
by the agency shall be applied first to outstanding penalties and
administrative cost charges, second to accrued interest, and third to the
outstanding principal.
(g) The Commission will waive the collection of interest and administrative
charges imposed pursuant to this section on the portion of the debt that is
paid within 30 days after the date on which interest began to accrue. The
Commission will not extend this 30-day period except for good cause shown of
extraordinary and compelling circumstances, completely documented and
supported in writing, submitted and received before the expiration of the
first 30-day period. The Commission may, on good cause shown of
extraordinary and compelling circumstances, completely documented and
supported in writing, waive interest, penalties, and administrative costs
charged under this section, in whole or in part, without regard to the
amount of the debt, either under the criteria set forth in these standards
for the compromise of debts, or if the agency determines that collection of
these charges is against equity and good conscience or is not in the best
interest of the United States.
(h) The Commission retains the common law right to impose interest and
related charges on debts not subject to 31 U.S.C. 3717.
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Goto Section: 1.1936 | 1.1941
Goto Year: 2014 |
2016
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