Page:United States Statutes at Large Volume 95.djvu/905

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 879

INTEREST ON LOANS MADE TO STATE UNEMPLOYMENT FUNDS

2407. (a) GENERAL RULE.—Section 1202 of the Social Security Act is amended by adding at the end thereof the following new subsection: "QoXD Except as otherwise provided in this subsection, each State shall pay interest on any advance made to such State under section 1201. Interest so payable with respect to periods during any calendar year shall be at the rate determined under paragraph (4) for such calendar year. "(2) No interest shall be required to be paid under paragraph (1) with respect to any advance made during any calendar year if— "(A) such advance is repaid in full before the close or September 30 of the calendar year in which the advance was made, and "(B) no other advance was made to such State under section 1201 during such calendar year and after the date on which the repayment of the advance was completed. "(3)(A) Interest payable under paragraph (1) which was attributable to periods during any fiscal year shall be paid by the State to the Secretary of the Treasury not later than the first day of the following fiscal year. If interest is payable under paragraph (1) on any advance (hereinafter in this subparagraph referred to as the 'first advance') by reason of another advance made to such State after September 30 of the calendar year in which the first advance was made, interest on such first advance attributable to periods before such September 30 shall be paid not later than the day after the date on which the other advance was made. "(B) Notwithstanding subparagraph (A), in the case of any advance made during the last 5 months of any fiscal year, interest on such advance attributable to periods during such fiscal year shall not be required to be paid before the last day of the succeeding taxable year. Any interest the time for payment of which is deferred by the preceding sentence shall bear interest in the same manner as if it were an advance made on the day on which it would have been required to be paid but for this subparagraph. ' (4) The interest rate determined under this paragraph with respect to any calendar year is a percentage (but not in excess of 10 percent) determined by dividing— "(A) the aggregate amount credited under section 904(e) to State accounts on the last day of the last calendar quarter of the immediately preceding calendar year, by "(B) the aggregate of the average daily balances of the State accounts for such quarter as determined under section 904(e). "(5) Interest required to be paid under paragraph (1) shall not be paid (directly or indirectly) by a State from amounts in its unemployment fund. If the Secretary of Labor determines that any State action results in the paying of such interest directly or indirectly (by an equivalent reduction in State unemployment taxes or otherwise) from such unemployment fund, the Secretary of Labor shall not certify such State's unemployment compensation law under section 3304 of the Internal Revenue Code of 1954. Such noncertification sjhall be made in accordance with section 3304(c) of such Code. "(6)(A) For purposes of paragraph (2), any voluntary repayment shall be applied against advances made under section 1201 on the last made first repaid basis. Any other repayment of such an advance shall be applied against advances on a first made first repaid basis. "(B) For purposes of this paragraph, the term 'voluntary repayment' means any repayment made under subsection (a). SEC.

42 USC 1322.

42 USC 1321.

42 USC 1104.

26 USC 3304.

"Voluntary repayment."

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