(a) The rate of interest assessed shall be the rate of the current
value of funds to the United States Treasury as published in the Federal
Register (as of the date the notice is sent), unless another rate is
specified by statute, regulations or preexisting contract condition. The
Office of the Chief Financial Officer will notify agencies promptly of
the current Treasury rate. The responsible agency may assess a higher
rate of interest if it reasonably determines that a higher rate is
necessary to protect the interests of the United States, and such rate
is agreed to by the Chief Financial Officer (or his designee). The rate
of interest prescribed in section 6621 of the Internal Revenue Code
shall be sought for backwages recovered in litigation by the Department.
(b) The rate of interest as initially assessed shall remain fixed
for the duration of the indebtedness, except that where a debtor has
defaulted on a repayment agreement and seeks to enter into a new
agreement, the agency may set a new interest rate which reflects the
current value of funds to the Treasury at the time the new agreement is
executed.
(c) Interest shall not be assessed on interest, penalties or
administrative costs required by this subpart. However, if the debtor
defaults on a previous repayment agreement, charges which accrued but
were not collected under the defaulted agreement shall be added to the
principal to be paid under a new repayment agreement.
