7. Limitation on recovery. Deduction from benefits that may be or may become payable to an individual as provided for in subsection 5 shall be is limited to not more than 10% 50% of any weekly benefit payment otherwise due the claimant.

Sec. 4. 26 MRSA §1051, sub-§§9 and 10 are enacted to read:

9.__Interest on overpayments.__Benefit payments owed to the commissioner bear interest at the rate of 1.0% per month or per fraction of a month.__Except as provided in this subsection, interest accrues on any balance that remains unpaid one year after the first of the month following the date the determination establishing the benefit overpayment becomes final until payment plus accrued interest is received by the bureau.__If the benefit overpayment was established in a determination rendered under section 1193, subsection 6, interest accrues from the first of the month following the date the determination establishing the benefit overpayment becomes final until payment plus accrued interest is received by the bureau.

10.__Application of benefit repayments.__Amounts received through any means to repay benefit payments owed to the commissioner must be applied first to any outstanding penalties, 2nd to any outstanding interest and 3rd to any benefit payments owed to the commissioner.

Sec. 5. 26 MRSA §1164, as amended by PL 1991, c. 9, Pt. KK, is further amended to read:

§1164. Special Administrative Expense Fund

The Special Administrative Expense Fund, as heretofore is created, is as a special fund in the State Treasury. All interest, fines and penalties collected under this chapter, together with any and all voluntary contributions tendered as a contribution to this fund, must be paid into this fund. The money may not be expended or available for expenditure in any manner which that would permit its substitution for, or a corresponding reduction in, federal funds which that would in the absence of that money be available to finance expenditures for the administration of the Employment Security Law. Nothing in this section may prevent prevents the money from being used as a revolving fund to cover expenditures, necessary and proper under the law, for which federal funds have been duly requested but not yet received, subject to the charging of those expenditures against those funds when received. The money in this fund must