Applicable interest rate
Applicable interest rate means the interest rate established by the Secretary of the Treasury for interest payments under Section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611) which is in effect on the day after the due date, except where the interest penalty is prescribed by other governmental authority (e.g., utility tariffs). The rate established under the Contract Disputes Act is referred to as the Renegotiation Board Interest Rate, the Contract Disputes Act Interest Rate, and the Prompt Payment Act Interest Rate, and is published semiannually by the Fiscal Service, Department of Treasury, in the Federal Register on or about January 1 and July 1.