Sec. 1.1941  Exemptions.

    (a) The provisions concerning interest and penalty on claims 
contained in 31 U.S.C. 3717 do not apply:
    (1) To debts owed by any State or local government;
    (2) To debts arising under contracts which were executed prior to, 
and were in effect on (i.e., were not completed as of), October 25, 
1982;
    (3) To debts where an applicable statute, regulation required by 
statute, loan agreement, or contract either prohibits such charges or 
explicitly fixes the charges that apply to the debts arising under the 
Social Security Act, the Internal Revenue Code of 1954, or the tariff 
laws of the United States.
    (b) However, the Commission is authorized to assess interest and 
related charges on debts which are not subject to 31 U.S.C. 3717 to the 
extent authorized under the common law or other applicable statutory 
authority.