55-1615. Same; interest on certain payments required; commencement and amount of payments; exception.
55-1615
55-1615. Same; interest on certain payments required; commencement andamount of payments; exception.The payor shall owe its payee interest on any payment, other thanexcluded payments, at the interest rate provided herein, determined on thefirst business day of the month that interest commences to accrue for thatpayment. For each subsequent month, the payor shall owe its payee interest onthe unpaid balance due payee on the last day of the month preceding suchsubsequent month at the interest rate provided herein determined on the firstbusiness day of each such subsequent month. Interest shall commence to accrue60 days following the last calendar day of the month of first sale and shallcease to accrue upon the day that payor places the payment in the United Statesmail, postage prepaid and addressed to payee. In the event a payor pays apayee's payment or portion thereof to a state under applicable unclaimed,abandoned or escheat property laws, then payor's obligation to pay interest onthe portion paid over to the state shall cease upon the day that such statereceives the payment from payor. Notwithstanding the above, interest shall notcommence on oil or gas sales occurring during the first 60 days following theinitial sale provided payment is placed in the United States mail, postageprepaid, and addressed to payee, within 120 days following the last calendarday of the month of the initial sale.
History: L. 1991, ch. 160, § 2; July 1.