20 C.F.R. Subpart D—Interest on Advances
Title 20 - Employees' Benefits
Advances made to States pursuant to title XII of the Social Security Act shall be subject to interest payable on the due dates specified in §606.31.1 1 ( [53 FR 37429, Sept. 26, 1988, as amended at 71 FR 35514, June 21, 2006]
Title 20: Employees' Benefits
PART 606—TAX CREDITS UNDER THE FEDERAL UNEMPLOYMENT TAX ACT; ADVANCES UNDER TITLE XII OF THE SOCIAL SECURITY ACT
Subpart D—Interest on Advances
§ 606.30 Interest rates on advances.
§ 606.31 Due dates for payment of interest. [Reserved]
§ 606.32 Types of advances subject to interest.
(a) Payment of interest. Except as otherwise provided in paragraph (b) of this section each State shall pay interest on any advance made to such State under title XII of the Social Security Act.
(b) Cash flow loans. Advances repaid in full prior to October 1 of the calendar year in which made are deemed cash flow loans and shall be free of interest; provided, that the State does not receive an additional advance after September 30 of the same calendar year. If such additional advance is received by the State, interest on the completely repaid earlier advance(s) shall be due and payable not later than the day following the date of the first such additional advance. The administrator of the State agency shall notify the Secretary of Labor no later than September 10 of those loans deemed to be cash flow loans and not subject to interest. This notification shall include the date and amount of each loan made in January through September and a copy of documentation sent to the Secretary of the Treasury requesting loan repayment transfer(s) from the State's account in the Unemployment Trust Fund to the Federal unemployment account in such Fund.
