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13-01.1 Interest on Delinquent Accounts

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CHAPTER 13-01.1INTEREST ON DELINQUENT ACCOUNTS13-01.1-01. Prompt payment required. Every state agency, political subdivision, orschool district, which acquires property or services pursuant to a contract with a business shall<br>pay for each complete delivered item of property or service on the date required by contract<br>between such business and agency or, if no date for payment is specified by contract, within<br>forty-five days after receipt of the invoice covering the delivered items or services.Theacquisition of property includes the rental of real or personal property.13-01.1-02. When interest payment required. Interest must accrue and be made onpayments overdue under section 13-01.1-01 at the rate of one and three-fourths percent per<br>month, unless a different rate is specified within the contract upon which the claim is based.<br>Interest must accrue beginning on the day after payment is due, if payment due date is specified<br>by contract, or on the day of receipt of the invoice covering the delivered goods or services, if<br>payment is not made within forty-five days. Interest ceases to accrue on the date payment is<br>made.13-01.1-03. Interest must compound. Any interest which remains unpaid at the end ofany forty-five-day period or which remains unpaid at the end of any specified period provided by<br>contract must be added to the principal amount of the debt and must thereafter accumulate<br>interest.13-01.1-04. Additional appropriation prohibited. An agency of the state is prohibitedfrom seeking additional appropriations to pay interest which accrues as a result of the agency's<br>failure to make payments as required by section 13-01.1-01.13-01.1-05. When this chapter is inapplicable. If the agency or business fails to timelypay interest as required by sections 13-01.1-02 and 13-01.1-06 and the failure is the result of a<br>dispute between the agency and the business, or a dispute between the business and a<br>subcontractor or supplier, over the amount due or over compliance with the contract, the<br>provisions of this chapter are inapplicable. If the settlement of a dispute is found in favor of the<br>business, or the subcontractor or supplier, interest must accrue and be paid as provided in<br>section 13-01.1-03.13-01.1-06.Subcontractor prompt payment required.Upon payment by a stateagency, political subdivision, school district, or agency of the United States, a business which has<br>acquired under contract, property or services in connection with its contract with such agency,<br>political subdivision, or school district, from a subcontractor or supplier, shall pay such<br>subcontractor or supplier within forty-five days after payment from such agency. Interest at the<br>rate specified in section 13-01.1-02 accrues and is due any subcontractor or supplier who is not<br>paid within forty-five days after the business receives payment from the agency, political<br>subdivision, or school district, unless otherwise provided by contract between the business and<br>the subcontractor or supplier.Page No. 1Document Outlinechapter 13-01.1 interest on delinquent accounts