CFR

1506.4—Late payment, penalty and administrative charges.

(a) Except as otherwise provided by statute, loan agreement or contract, the African Development Foundation will assess:

(1) Late payment charges (interest) on unpaid claims at the prompt payment interest rate established by the Secretary of the Treasury as the current value of funds to the United States Treasury.

(2) Penalty charges at 6 percent a year on any portion of a claim that is delinquent for more than 90 days.

(3) Administrative charges to cover the costs of processing and calculating delinquent claims.

(b) Late payment charges shall be computed from the date of mailing or hand delivery of the notice of the claim and interest requirements.

(c) Waiver. (1) Late payment charges are waived on any claim or any portion of a claim which is paid within 30 days after the date on which late payment charges begin to accrue.

(2) The 30 day period may be extended on a case-by-case basis if it is determined that an extension is appropriate.

(3) The African Development Foundation may waive late payment, penalty and administrative charges under the FCCS criteria for the compromise of claims ( 4 CFR part 103 ), or upon a determination that collection of the charges would be against equity and good conscience or not in the best interest of the United States, including for example:

(i) Pending consideration of a request for reconsideration, administrative review or waiver under a permissive statute,

(ii) If repayment of the full amount of the debt is made after the date upon which interest and other charges become payable and the estimated costs of recovering the residual balance exceeds the amount owed, or

(iii) If collection of interest or other charges would jeopardize collection of the principal of the claim.

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