§ 42-11.1-6 - Computation of interest payment. - Rhode Island Statutes

SECTION 42-11.1-6

   § 42-11.1-6  Computation of interestpayment. – (a) Interest payments on amounts due to a contractor according to this chaptershall be paid to the contractor for the period beginning on the date after therequired payment date and ending on the day a proper invoice was approved forpayment by the controller's office.

   (b) Each state department, agency, or project administeringstate funds shall calculate and pay interest upon payment of the principal sumsdue. Interest payment shall accompany payment of the net amount due for goodsand service.

   (c) Agencies shall not require companies to petition,invoice, bill, or wait any additional days to receive interest due.

   (d) Interest shall be paid at a rate equal to the primeinterest rate as reported on the money market page of the Wall Street Journalpublished on the first regular business day of each month.

   (e) Unpaid interest shall compound every month overdue.

   (f) Interest shall be paid from funds appropriated to theparticular state agency with which a contract exists. If more than one stateagency has caused a late payment, with respect to a particular contract, eachstate agency shall bear a proportionate share of the interest payment.