22 CFR § 1506.27 - How are interest, penalty, and administrative costs assessed?

---
identifier: "/us/cfr/t22/s1506.27"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "22 CFR § 1506.27 - How are interest, penalty, and administrative costs assessed?"
title_number: 22
title_name: "Foreign Relations"
section_number: "1506.27"
section_name: "How are interest, penalty, and administrative costs assessed?"
chapter_name: "AFRICAN DEVELOPMENT FOUNDATION"
part_number: "1506"
part_name: "COLLECTION OF CLAIMS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Title V of the International Security and Development Cooperation Act of 1980, 22 U.S.C. 290h; 31 U.S.C. 3701-3719; 5 U.S.C. 5514; 31 CFR part 285; 31 CFR 900-904; 5 CFR 550, subpart K; 31 U.S.C. 3720A."
regulatory_source: "81 FR 95028, Dec. 27, 2016, unless otherwise noted."
cfr_part: "1506"
---


# 1506.27 How are interest, penalty, and administrative costs assessed?

USADF will assess interest, penalties and administrative costs on debts collected under the procedures in this section. Interest, penalty and administrative costs will continue to accrue during the period that the debtor is seeking formal or informal review of the debt or requesting a waiver. The following guidelines apply to the assessment of these costs on debts collected by salary offset:

(a) Interest will be assessed on all debts not collected by the payment due date specified in the Bill for Collection or demand letter. USADF will waive the interest and administrative charges on the portion of the debt that is paid within 30 days after the date on which interest begins to accrue.

(b) Administrative costs will be assessed if the debt is referred to Treasury for cross-servicing.

(c) Deductions by administrative offset normally begin prior to the time for assessment of a penalty. Therefore, a penalty charge will not be assessed unless deductions occur more than 90 days from the due date in the Bill for Collection or demand letter.