Title 34
SECTION 34.30
34.30 Application of payments and accrual of interest.
§ 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
(2) Applicable law; and
(c) To outstanding principal of the debt.
(Authority: 31 U.S.C. 3720D)