A. Interest shall accrue, at the rate determined pursuant to subsection B, onall amounts owed by a state agency to a vendor that remain unpaid after sevendays following the payment date. However, nothing in this section shallaffect any contract providing for a different rate of interest, or for thepayment of interest in a different manner.
B. The rate of interest charged a state agency pursuant to subsection A shallbe the base rate on corporate loans (prime rate) at large United States moneycenter commercial banks as reported daily in the publication entitled TheWall Street Journal. Whenever a split prime rate is published, the lower ofthe two rates shall be used. However, in no event shall the rate of interestcharged exceed the rate of interest established pursuant to § 58.1-1812.
C. Notwithstanding subsection A, no interest penalty shall be charged whenpayment is delayed because of disagreement between a state agency and avendor regarding the quantity, quality or time of delivery of goods orservices or the accuracy of any invoice received for the goods or services.The exception from the interest penalty provided by this subsection shallapply only to that portion of a delayed payment that is actually the subjectof the disagreement and shall apply only for the duration of the disagreement.
D. This section shall not apply to § 2.2-4333 pertaining to retainage onconstruction contracts, during the period of time prior to the date the finalpayment is due. Nothing contained herein shall prevent a contractor fromreceiving interest on such funds under an approved escrow agreement.
E. Notwithstanding subsection A, no interest penalty shall be paid to anydebtor on any payment, or portion thereof, withheld pursuant to theComptroller's Debt Setoff Program, as authorized by the Virginia DebtCollection Act (§ 2.2-4800 et seq.), commencing with the date the payment iswithheld. If, as a result of an error, a payment or portion thereof iswithheld, and it is determined that at the time of setoff no debt was owed tothe Commonwealth, then interest shall accrue at the rate determined pursuantto subsection B on amounts withheld that remain unpaid after seven daysfollowing the payment date.
(1984, c. 736, § 11-62.5; 1985, c. 101; 1992, c. 75; 2001, c. 844.)
A. Interest shall accrue, at the rate determined pursuant to subsection B, onall amounts owed by a state agency to a vendor that remain unpaid after sevendays following the payment date. However, nothing in this section shallaffect any contract providing for a different rate of interest, or for thepayment of interest in a different manner.
B. The rate of interest charged a state agency pursuant to subsection A shallbe the base rate on corporate loans (prime rate) at large United States moneycenter commercial banks as reported daily in the publication entitled TheWall Street Journal. Whenever a split prime rate is published, the lower ofthe two rates shall be used. However, in no event shall the rate of interestcharged exceed the rate of interest established pursuant to § 58.1-1812.
C. Notwithstanding subsection A, no interest penalty shall be charged whenpayment is delayed because of disagreement between a state agency and avendor regarding the quantity, quality or time of delivery of goods orservices or the accuracy of any invoice received for the goods or services.The exception from the interest penalty provided by this subsection shallapply only to that portion of a delayed payment that is actually the subjectof the disagreement and shall apply only for the duration of the disagreement.
D. This section shall not apply to § 2.2-4333 pertaining to retainage onconstruction contracts, during the period of time prior to the date the finalpayment is due. Nothing contained herein shall prevent a contractor fromreceiving interest on such funds under an approved escrow agreement.
E. Notwithstanding subsection A, no interest penalty shall be paid to anydebtor on any payment, or portion thereof, withheld pursuant to theComptroller's Debt Setoff Program, as authorized by the Virginia DebtCollection Act (§ 2.2-4800 et seq.), commencing with the date the payment iswithheld. If, as a result of an error, a payment or portion thereof iswithheld, and it is determined that at the time of setoff no debt was owed tothe Commonwealth, then interest shall accrue at the rate determined pursuantto subsection B on amounts withheld that remain unpaid after seven daysfollowing the payment date.
(1984, c. 736, § 11-62.5; 1985, c. 101; 1992, c. 75; 2001, c. 844.)
A. Interest shall accrue, at the rate determined pursuant to subsection B, onall amounts owed by a state agency to a vendor that remain unpaid after sevendays following the payment date. However, nothing in this section shallaffect any contract providing for a different rate of interest, or for thepayment of interest in a different manner.
B. The rate of interest charged a state agency pursuant to subsection A shallbe the base rate on corporate loans (prime rate) at large United States moneycenter commercial banks as reported daily in the publication entitled TheWall Street Journal. Whenever a split prime rate is published, the lower ofthe two rates shall be used. However, in no event shall the rate of interestcharged exceed the rate of interest established pursuant to § 58.1-1812.
C. Notwithstanding subsection A, no interest penalty shall be charged whenpayment is delayed because of disagreement between a state agency and avendor regarding the quantity, quality or time of delivery of goods orservices or the accuracy of any invoice received for the goods or services.The exception from the interest penalty provided by this subsection shallapply only to that portion of a delayed payment that is actually the subjectof the disagreement and shall apply only for the duration of the disagreement.
D. This section shall not apply to § 2.2-4333 pertaining to retainage onconstruction contracts, during the period of time prior to the date the finalpayment is due. Nothing contained herein shall prevent a contractor fromreceiving interest on such funds under an approved escrow agreement.
E. Notwithstanding subsection A, no interest penalty shall be paid to anydebtor on any payment, or portion thereof, withheld pursuant to theComptroller's Debt Setoff Program, as authorized by the Virginia DebtCollection Act (§ 2.2-4800 et seq.), commencing with the date the payment iswithheld. If, as a result of an error, a payment or portion thereof iswithheld, and it is determined that at the time of setoff no debt was owed tothe Commonwealth, then interest shall accrue at the rate determined pursuantto subsection B on amounts withheld that remain unpaid after seven daysfollowing the payment date.
(1984, c. 736, § 11-62.5; 1985, c. 101; 1992, c. 75; 2001, c. 844.)
