Federal Register: July 2, 2009 (Volume 74, Number 126)
DOCID: fr02jy09-117 FR Doc E9-15606
DEPARTMENT OF THE TREASURY
Fiscal Service
NOTICE: NOTICES
DOCID: fr02jy09-117
DOCUMENT ACTION: Notice.
SUBJECT CATEGORY:
Prompt Payment Interest Rate; Contract Disputes Act
DATES: Effective July 1, 2009, to December 31, 2009.
DOCUMENT SUMMARY:
For the period beginning July 1, 2009, and ending on December 31, 2009, the prompt payment interest rate is 4\7/8\ per centum per annum.
SUMMARY:
Prompt Payment Interest Rate; Contract Disputes Act
SUPPLEMENTAL INFORMATION
An agency that has acquired property or services from a business concern and has failed to pay for the complete delivery of property or service by the required payment date shall pay the business concern an interest penalty. 31 U.S.C. 3902(a). The Contract Disputes Act of 1978, Section 12, Public Law 95563, 92 Stat. 2389, and the Prompt Payment Act of 1982, 31 U.S.C. 3902(a), provide for the calculation of interest due on claims at the rate established by the Secretary of the Treasury.
The Secretary of the Treasury has the authority to specify the rate by which the interest shall be computed for interest payments under section 12 of the Contract Disputes Act of 1978 and under the Prompt Payment Act. Agencies must pay the interest penalty calculated with the interest rate, which is in effect at the time the agency accrues the obligation to pay a late payment interest penalty. Id. ``The interest penalty shall be paid for the period beginning on the day after the required payment date and ending on the date on which the payment is made.'' 31 U.S.C. 3902(b). Under the Prompt Payment Act, if an interest penalty is owed to a business concern, the penalty shall be paid regardless of whether the business concern requested payment of interest.
Therefore, notice is given that the Secretary of the Treasury has
determined that the rate of interest applicable for the period
beginning July 1, 2009, and ending on December 31, 2009, is 4\7/8\ per centum per annum.
Richard L. Gregg,
Fiscal Assistant Secretary (Acting).
[FR Doc. E915606 Filed 7109; 8:45 am]
BILLING CODE 481039P
FOR FURTHER INFORMATION CONTACT
Mike Linder, Director, Division of Accounting Operations, Office of Public Debt Accounting, Bureau of the Public Debt, Parkersburg, West Virginia, 261061328, (304) 4805125; Jill Reeves, Team Leader, Borrowings Accounting Team, Division of Accounting Operations, Office of Public Debt Accounting, Bureau of the Public Debt, Parkersburg, West Virginia, 261061328, (304) 4805204; Paul Wolfteich, Chief Counsel, Office of the Chief Counsel, Bureau of the Public Debt, (202) 5043705; or Brenda L. Hoffman, Attorney Advisor, Office of the Chief Counsel, Bureau of the Public Debt, (202) 5043706.