§2705 — Title 33 Navigation and Navigable Waters | U.S. Code

Summary

Responsible parties and their guarantors must pay interest on money they pay to settle a claim. They must have a way to pay or settle short-term, interim claims. If someone gets a partial payment now, they can still ask later for any unpaid damages. Interest starts on the 30th day after the claim is presented and stops when the claim is paid. If a guarantor makes an offer at least as big as the final payment, the interest clock stops from the offer date until the offer is accepted. If that offer comes within 60 days after the claim was presented, no interest is due for any time before the offer is accepted. No interest builds up when delay is outside the responsible party’s control or when it would be unfair to charge interest. For most claims, interest is based on the daily average commercial paper rate for maturities of 180 days or less from the Federal Reserve Bulletin. Federal cost-recovery claims use a different federal interest rule. Interest is added on top of damages and cleanup costs and is paid even if other liability limits apply. Guarantor payments of interest may be subject to other rules.

Title 33, §2705

Navigation and Navigable Waters — Source: USLM XML via OLRC

(a)The responsible party or the responsible party’s guarantor is liable to a claimant for interest on the amount paid in satisfaction of a claim under this Act for the period described in subsection (b). The responsible party shall establish a procedure for the payment or settlement of claims for interim, short-term damages. Payment or settlement of a claim for interim, short-term damages representing less than the full amount of damages to which the claimant ultimately may be entitled shall not preclude recovery by the claimant for damages not reflected in the paid or settled partial claim.

(b)(1)Except as provided in paragraph (2), the period for which interest shall be paid is the period beginning on the 30th day following the date on which the claim is presented to the responsible party or guarantor and ending on the date on which the claim is paid.

(2)If the guarantor offers to the claimant an amount equal to or greater than that finally paid in satisfaction of the claim, the period described in paragraph (1) does not include the period beginning on the date the offer is made and ending on the date the offer is accepted. If the offer is made within 60 days after the date on which the claim is presented under section 2713(a) of this title, the period described in paragraph (1) does not include any period before the offer is accepted.

(3)If in any period a claimant is not paid due to reasons beyond the control of the responsible party or because it would not serve the interests of justice, no interest shall accrue under this section during that period.

(4)(A)The interest paid for claims, other than Federal Government cost recovery claims, under this section shall be calculated at the average of the highest rate for commercial and finance company paper of maturities of 180 days or less obtaining on each of the days included within the period for which interest must be paid to the claimant, as published in the Federal Reserve Bulletin.

(B)The interest paid for Federal Government cost recovery claims under this section shall be calculated in accordance with section 3717 of title 31.

(5)(A)Interest (including prejudgment interest) under this paragraph is in addition to damages and removal costs for which claims may be asserted under section 2702 of this title and shall be paid without regard to any limitation of liability under section 2704 of this title.

(B)The payment of interest under this subsection by a guarantor is subject to section 2716(f).11 See References in Text note below.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This Act, referred to in subsec. (a), is Pub. L. 101–380, Aug. 18, 1990, 104 Stat. 484, as amended, known as the Oil Pollution Act of 1990, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 2701 of this title and Tables. section 2716(f), referred to in subsec. (b)(5)(B), probably should have been a reference to section 1016(f) in the original, meaning section 1016(f) of Pub. L. 101–380, known as the Oil Pollution Act of 1990, which is classified to section 2716(f) of this title.

Amendments

2025—Subsec. (b)(5)(B). Pub. L. 119–60 substituted “section 2716(f)” for “section 2716(g) of this title”. 2022—Subsec. (b)(4). Pub. L. 117–263 designated existing provisions as subpar. (A) and inserted heading, substituted “The interest paid for claims, other than Federal Government cost recovery claims,” for “The interest paid”, and added subpar. (B). 1996—Pub. L. 104–324, § 1142(a)(1), inserted “; partial payment of claims” after “Interest” in section catchline. Subsec. (a). Pub. L. 104–324, § 1142(a)(2), inserted at end “The responsible party shall establish a procedure for the payment or settlement of claims for interim, short-term damages. Payment or settlement of a claim for interim, short-term damages representing less than the full amount of damages to which the claimant ultimately may be entitled shall not preclude recovery by the claimant for damages not reflected in the paid or settled partial claim.”

§2705 Interest; partial payment of claims