R21-1-7. Costs of Collection

  Pursuant to Subsections 63A-3-502(4) (g), Section 15-1-4, Utah Code, and by the legislature in applicable laws, the Office shall charge penalty, interest, and administrative costs of collection and shall collect these costs in addition to the receivable balance from the debtor. The fee calculation and payment priority shall be applied according to the following methodology.

  (a) Pursuant to 63A-3-502(4)(g)(i), the costs of collection shall be charged on all accounts referred for collection and the cost shall be calculated based on the dollars collected times the rate authorized by the legislature. The cost of collection shall be paid first from each payment.

  (b) The Penalty shall be calculated as a percent of the receivable balance referred for collection. Two percent of each payment shall be applied to the outstanding penalty until the penalty is paid in full. The penalty payment shall be calculated up to the authorized penalty percent set annually by the legislature, times the received payment amount. The calculated penalty amount shall be paid after the costs of collection are determined and paid.

  (c) Two types of interest shall be charged on accounts referred to the Office. Postjudgment interest as established by Section 15-1-4, Utah Code, applies to receivables with judgments established by the courts with a sentencing date subsequent to May 5, 1999. Postjudgment interest accrues on the unpaid judgment balance of the receivable. Postjudgment interest that accrues on a trust or the trust portion of a receivable, shall be paid subsequent to the state's outstanding receivable. All other state receivables referred to the Office are charged an interest charge pursuant to 63A-3-502 (4) (g)(iii)(B), Utah Code. This interest is referred to as OSDC interest. OSDC accrued interest shall be paid from each payment up to 5% of the payment after the payment of the costs of collection and 2% penalty except on trust receivables or receivables including a trust account.

  (d) Each payment received on trust receivables shall be applied to the following items in the priority listed until the payment is fully disbursed: 1st - cost of collection, 2nd - 2% penalty, 3rd - the trust receivable balance up to the total amount of the receivable, and 4th - the accrued postjudgment interest.

  (e) Each payment received on receivables that include trust(s) and state receivable balances shall be applied to the following items in the priority listed until the payment is fully disbursed: 1st - cost of collection, 2nd 2% - penalty, 3rd - the trust(s) receivable balance until paid in full, 4th - accrued post-judgment or OSDC interest on the state receivable balance, 5th - the state receivable balance, and 6th - the accrued trust post-judgment interest.

  (f) Each payment received on receivables owed only to the state shall be applied to the following items in the priority listed until the payment is fully disbursed: 1st - cost of collection, 2nd 2% - penalty payment, 3rd - 5% accrued post-judgment or OSDC interest, and 4th - the receivable balance.

  (g) Trust Payments sent to victims of crimes that are returned to the Office because of bad addresses, shall be retained by the Office, until the victim is located or statute requires transfer to another State agency. Regardless, payments shall continue to be applied to the trust balance(s) until liquidated, and there after applied to State debt.