34.30—Application of payments and accrual of interest.
We apply payments received through a garnishment in the following order—
(a)
To costs incurred to collect the debt;
(b)
To interest accrued on the debt at the rate established by—
(1)
The terms of the obligation under which it arises; or
(c)
To outstanding principal of the debt.
Code of Federal Regulations
(Authority:
31 U.S.C. 3720D
)