Interest Liability. Because the CMIA was created to promote greater equity in the exchange of funds, a means to ensure that neither the States or Federal governments benefited or suffered financially was needed. The method decided upon to ensure the equity of the transfers between the States and Federal governments for programs covered by CMIA was the accrual of interest when the exchange of funds did not follow the prescribed outlined in the TSA. The agency is responsible for ensuring that OSRAP is aware of all circumstances where an interest liability may exist, for either the federal government or the state, so that the correct liability is recognized. This notification is to be made on the data that agencies submit to OSRAP, as long as the reason is clearly stated and the dates and times are clearly denoted so that interest may be calculated. The state interest liability will accrue from the day the federal funds are credited to the State account to the day the funds are paid out for program purposes. The federal interest liability will accrue from the day state funds are paid out until the day the federal funds are credited to a state account. OSRAP will review the data submitted by the state agencies to ensure CHAPTER 5 that interest has been calculated correctly. The interest rate to be used for all interest liabilities incurred under the CMIA is the annualized rate equal to the average equivalent yields of 13-week Treasury Bills auctioned during Louisiana's fiscal year. The Financial Management Service of the U.S. Treasury will provide this rate to the State. The following are instances of when state and federal interest liabilities will be incurred:
Interest Liability. The Borrower shall pay to the Lender upon demand by the Lender at any time interest (Default Interest) on any amount payable by the Borrower to the Lender under this deed, including interest payable under this clause 13, which is unpaid.
