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XII.6.C
Paying Prompt Contract Interest

 

SECTION OVERVIEW AND POLICIES

 

This section explains the process for paying interest pursuant to the Prompt Contract Law once an Agency has determined that interest is owed. To determine if the Agency owes interest, please see Chapter XI, Section 4.A - Not-for-Profit Prompt Contracting of this Guide.

 

In the event that the Agency does owe interest, the interest rate used in the late contract interest calculation is based on the overpayment rate established by the Commissioner of Taxation and Finance. This rate, however, is subject to change quarterly. Please refer to the Department of Taxation and Finance’s website for the most current interest rate.

 


Process and Document Preparation:

 

To process a payment, Agencies must submit a regular voucher, noting the following special instructions:

 

 

For information on processing vouchers for Prompt Payment Interest see Section 5.I - Prompt Payment Interest and Merchandise/Invoice Receive Date of this Chapter for guidance.

 

 

Guide to Financial Operations
REV. 04/01/2017