(1) An assessment deferred under subsection 7.195(2)(a) shall accrue simple interest of three percent (3%) per annum from the date it is levied until the deferral ends. The contract required by section 7.200 shall specify whether the interest is to be paid semi-annually or monthly during the deferral, or in one lump sum at the end of the deferral. When the deferral ends payment of the assessment shall be made as provided in section 7.220.

(2) Extended or modified assessment payments authorized under subsection 7.195(2)(b) shall be due monthly or semi-annually for a term of years not to exceed twice the number of years remaining on the assessment bonding agreement as of the date that the application for extension of payments is submitted. The amount and date of monthly or semi-annual payments to be made shall be as specified in the contract of extension or modification. Each such payment shall include interest accrued to the time of the payment on the unpaid balance of the assessment. During the first 10 years of the extension, interest shall accrue at the rate then authorized by section 2.022 of this code. During any period of the extension after the 10 years, interest shall accrue at three percent (3%) per annum less than the rate of interest charged at the beginning of the extension period.

(3) Deferrals under subsection 7.195(3) shall accrue simple interest at the annual rate of five percent (5%), or, if the city borrows money from the state, the rate charged by the state to fund the Sewer Assessment Deferral Loan Program. Such interest shall accrue from the date the assessment is levied until the deferral ends and shall be paid at the end of the deferral. When the deferral ends payment of the amounts deferred shall be made as provided in section 7.220.

(4) An assessment deferred under subsection 7.197(7) shall accrue interest from the date it is levied until the deferral ends at a variable rate to be adjusted annually to reflect the city’s costs in providing the funding source. When the deferral ends, payment of the assessment and accrued interest shall be made as provided in section 7.190