PRIA, Government Policy, Made Personal

Summary

The responsible party or its guarantor must pay interest on money they pay to settle a claim. The responsible party must have a process to pay interim, short-term damages. If they make a partial payment, the claimant can still get more later for damages not covered by that partial payment. Interest starts on the 30th day after the claim is presented and runs until the claim is paid, except in certain cases. If the guarantor offers an amount equal to or greater than the final payment, the time from that offer until the claimant accepts does not count. If that offer is made within 60 days after the claim was presented under section 2713(a), no time before the offer is accepted counts. No interest builds up during delays beyond the responsible party’s control or for reasons of fairness. For most claims, the interest rate is the daily average of the highest rate for commercial and finance company paper with maturities of 180 days or less, as published in the Federal Reserve Bulletin. Federal cost recovery claims use section 3717 of title 31. Interest is paid on top of damages and removal costs and is not limited by the liability cap in section 2704. Payment of interest by a guarantor is subject to section 2716(f).

Title 33, §2705

Navigation and Navigable Waters, Source: USLM XML via OLRC

(a)General rule

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)Period

(1)In general

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)Exclusion of period due to offer by guarantor (3) Exclusion of periods in interests of justice

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.

(4)Calculation of interest

(A)In general

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)Federal cost recovery claims

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

(5)Interest not subject to liability limits

(A)In general

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)Payment by guarantor

The payment of interest under this subsection by a guarantor is subject to section 2716(f).

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