PUBLIC LAW 97-452—JAN. 12, 1983
96 STAT. 2475
"(4) the head of an agency is deemed to receive an invoice on the later of the dates that— "(A) the designated payment office or finance center of the agency actually receives a proper invoice; or "(B) the head of the agency accepts the applicable property or service. "(5) a payment is deemed to be made on the date a check for the payment is dated. "(6) a contract to rent property is deemed to be a contract to acquire the property. "(b) This chapter applies to the Tennessee Valley Authority. However, regulations prescribed under this chapter do not apply to the Authority, and the Authority alone is responsible for carrying out this chapter as it applies to contracts of the Authority.
- '§ 3902. Interest penalties
"(a) Under regulations prescribed under section 3903 of this title, the head of an agency acquiring property or service from a business concern, who does not pay the concern for each complete delivered item of property or service by the required payment date, shall pay an interest penalty to the concern on the amount of the payment due. The interest shall be computed at the rate the Secretary of the Treasury establishes for interest payments under section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611). The Secretary shall publish each rate in the Federal Register. "(b) Except as provided in section 3906 of this title, the interest penalty shall be paid for the period beginning on the day after the required payment date and ending on the date on which payment is made. However, a penalty may not be paid if payment for the item is made— "(1) when the item is a meat or meat food product described in section 3903(2)(A) of this title, before the 4th day after the required payment date; (2) when the item is an agricultural commodity described in section 3903(2)(B) of this title, before the 6th day after the required payment date; or (3) when the item is not an item referred to in clauses (1) and (2) of this subsection, before the 16th day after the required payment date. "(c) An amount of an interest penalty unpaid after any 30-day period shall be added to the principal amount of the debt, and a penalty accrues thereafter on the added amount. "(d) This section does not authorize the appropriation of additional amounts to pay an interest penalty. The head of an agency shall pay a penalty under this section out of amounts made available to carry out the program for which the penalty is incurred. "(e) A recipient of a grant from the head of an agency may provide in a contract for the acquisition of property or service from a business concern that, consistent with the usual business practices of the recipient and applicable State and local law, the recipient will pay an interest penalty on amounts overdue under the contract under conditions agreed to by the recipient and the concern. The recipient may not pay the penalty from amounts received from an agency. Amounts expended for the penalty may not be counted toward a matehing requirement applicable to the grant. An obligation to pay the penalty is not an obligation of the United States Government.
Tennessee VaUey Authority. 31 USC 3902.
Publication in Federal Roister.
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