Subsection (b)(3)(B) of section 1202 of the Social Security Act
permits a State to delay payment of interest accrued on advances made
during the last five months of the Federal fiscal year (May, June, July,
August, and September) to no later than December 31 of the next
succeeding calendar year. If the payment is delayed, interest on the
delayed payment will accrue from the normal due date (i.e., September
30) and in the same manner as if the interest due on the advance(s) was
an advance made on such due date. The Governor of a State which has
decided to delay such interest payment shall notify the Secretary of
Labor no later than September 1 of the year with respect to which the
delay is applicable.
