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31 U.S.C. § 3902 — Interest penalties
Federal law — U.S. Code and appendices · legal_authorities
**(a)** Under regulations prescribed under [section 3903 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3903&num=0&edition=prelim), 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 of interest established by the Secretary of the Treasury, and published in the Federal Register, for interest payments under section 7109(a)(1) and (b) of title 41, which is in effect at the time the agency accrues the obligation to pay a late payment interest penalty.
**(b)** 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.
**(c)**
(1) A business concern shall be entitled to an interest penalty of $1.00 or more which is owed such business concern under this section, and such penalty shall be paid without regard to whether the business concern has requested payment of such penalty.
(2) Each payment subject to this chapter for which a late payment interest penalty is required to be paid shall be accompanied by a notice stating the amount of the interest penalty included in such payment and the rate by which, and period for which, such penalty was computed.
(3) If a business concern—
(A) is owed an interest penalty by an agency;
(B) is not paid the interest penalty in a payment made to the business concern by the agency on or after the date on which the interest penalty becomes due;
(C) is not paid the interest penalty by the agency within 10 days after the date on which such
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Source file: Laws/federal/codes/united-states-code/title-31/section-3902-interest-penalties--4c077bf87f.md
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Source location: Title 31, Chapter 39, § 3902; chapter-039-prompt-payment.md
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**(a)** Under regulations prescribed under [section 3903 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3903&num=0&edition=prelim), 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 of interest established by the Secretary of the Treasury, and published in the Federal Register, for interest payments under section 7109(a)(1) and (b) of title 41, which is in effect at the time the agency accrues the obligation to pay a late payment interest penalty.
**(b)** 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.
**(c)**
(1) A business concern shall be entitled to an interest penalty of $1.00 or more which is owed such business concern under this section, and such penalty shall be paid without regard to whether the business concern has requested payment of such penalty.
(2) Each payment subject to this chapter for which a late payment interest penalty is required to be paid shall be accompanied by a notice stating the amount of the interest penalty included in such payment and the rate by which, and period for which, such penalty was computed.
(3) If a business concern—
(A) is owed an interest penalty by an agency;
(B) is not paid the interest penalty in a payment made to the business concern by the agency on or after the date on which the interest penalty becomes due;
(C) is not paid the interest penalty by the agency within 10 days after the date on which such payment is made; and
(D) makes a written demand, not later than 40 days after the date on which such payment is made, that the agency pay such a penalty,
such business concern shall be entitled to an amount equal to the sum of the late payment interest penalty to which the contractor is entitled and an additional penalty equal to a percentage of such late payment interest penalty specified by regulation by the Director of the Office of Management and Budget, subject to such maximum as may be specified in such regulations.
**(d)** The temporary unavailability of funds to make a timely payment due for property or services does not relieve the head of an agency from the obligation to pay interest penalties under this section.
**(e)** 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.
**(f)** 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.
**(g)** 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 matching requirement applicable to the grant. An obligation to pay the penalty is not an obligation of the United States Government.
**(h)**
(1) This section shall apply to contracts for the procurement of property or services entered into pursuant to section 4(h) of the Act of June 29, 1948 ([15 U.S.C. 714b(h)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section714b/h&num=0&edition=prelim)).
(2)
(A) In the case of a payment to which producers on a farm are entitled under the terms of an agreement entered into under the Agricultural Act of 1949 ([7 U.S.C. 1421](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1421&num=0&edition=prelim) et seq.), an interest penalty shall be paid to the producers if the payment has not been made by the required payment or loan closing date. The interest penalty shall be paid—
(i) on the amount of payment or loan due; and
(ii) for the period beginning on the first day beginning after the required payment or loan closing date and ending on the date the amount is paid or loaned.
(B) As used in this subsection, the “required payment or loan closing date” means—
(i) for a purchase agreement, the 30th day after delivery of the warehouse receipt for the commodity subject to the purchase agreement;
(ii) for a loan agreement, the 30th day beginning after the date of receipt of an application with all requisite documentation and signatures, unless the applicant requests that the disbursement be deferred;
(iii) for refund of amounts received greater than the amount required to repay a commodity loan, the first business day after the Commodity Credit Corporation receives payment for such loan;
(iv) for land diversion payments (other than advance payments), the 30th day beginning after the date of completion of the production adjustment contract by the producer;
(v) for an advance land diversion payment, 30 days after the date the Commodity Credit Corporation executes the contract with the producer;
(vi) for a deficiency payment (other than advance payments) based upon a 12-month or 5-month period, 91 days after the end of such period; or
(vii) for an advance deficiency payment, 30 days after the date the Commodity Credit Corporation executes the contract with the producer.
(3) Payment of the interest penalty under this subsection shall be made out of funds available under section 8 of the Act of June 29, 1948 ([15 U.S.C. 714f](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section714f&num=0&edition=prelim)).
(4) [Section 3907 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3907&num=0&edition=prelim) shall not apply to interest penalty payments made under this subsection.
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** In the event that a contractor, after making a certified payment request to an agency pursuant to [section 3903(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3903/b&num=0&edition=prelim), discovers that a portion or all of such payment request constitutes a payment for performance by such contractor that fails to conform to the specifications, terms, and conditions of its contract (hereafter in this subsection referred to as the “unearned amount”), then the contractor shall—
(1) notify the agency of such performance deficiency; and
(2) be obligated to pay the Government an amount equal to interest on the unearned amount (computed in the manner provided in [section 3903(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3903/c&num=0&edition=prelim)), from the date of the contractor’s receipt of such unearned amount until—
(A) the date the contractor notifies the agency that the performance deficiency has been corrected; or
(B) the date the contractor reduces the amount of any subsequent certified application for payment to such agency by an amount equal to the unearned amount.
**(b)** Each construction contract awarded by an agency shall include a clause that requires the prime contractor to include in each subcontract for property or services entered into by the prime contractor and a subcontractor (including a material supplier) for the purpose of performing such construction contract—
(1) a payment clause which obligates the prime contractor to pay the subcontractor for satisfactory performance under its subcontract within 7 days out of such amounts as are paid to the prime contractor by the agency under such contract; and
(2) an interest penalty clause which
Source: Supplied U.S. Code snapshot — release unconfirmed · 31 U.S.C. § 3905
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Small business procurements**
(1) **In general** — For purposes of this chapter, small business concerns shall receive any award or contract if such award or contract is, in the determination of the Administrator and the contracting agency, in the interest of—
(A) maintaining or mobilizing the full productive capacity of the United States;
(B) war or national defense programs; or
(C) assuring that a fair proportion of the total purchases and contracts for goods and services of the Government in each industry category (as defined under paragraph (2)) are awarded to small business concerns.
(2) **Industry category defined**
(A) *In general* — In this subsection, the term “industry category” means a discrete group of similar goods and services, as determined by the Administrator in accordance with the North American Industry Classification System codes used to establish small business size standards, except that the Administrator shall limit an industry category to a greater extent than provided under the North American Industry Classification System codes if the Administrator receives evidence indicating that further segmentation of the industry category is warranted—
(i) due to special capital equipment needs;
(ii) due to special labor requirements;
(iii) due to special geographic requirements, except as provided in subparagraph (B);
(iv) due to unique Federal buying patterns or requirements; or
(v) to recognize a new industry.
(B) *Exception for geographic requirements* — The Administrator may not further segment an industry category based on geographic requirements unless—
(i) the Government typically designates the geographic area where work for contracts for goods or services is to be performed;
(ii) Governmen
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 644
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** In this chapter—
(1) “agency” has the same meaning given that term in [section 551(1) of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section551/1&num=0&edition=prelim) and includes an entity being operated, and the head of the agency identifies the entity as being operated, only as an instrumentality of the agency to carry out a program of the agency.
(2) “business concern” means—
(A) a person carrying on a trade or business; and
(B) a nonprofit entity operating as a contractor.
(3) “proper invoice” is an invoice containing or accompanied by substantiating documentation the Director of the Office of Management and Budget may require by regulation and the head of the appropriate agency may require by regulation or contract.
(4) for the purposes of determining a payment due date and the date upon which any late payment interest penalty shall begin to accrue, the head of the agency is deemed to receive an invoice—
(A) on the later of—
(i) the date on which the place or person designated by the agency to first receive such invoice actually receives a proper invoice; or
(ii) on the 7th day after the date on which, in accordance with the terms and conditions of the contract, the property is actually delivered or performance of the services is actually completed, as the case may be, unless—
(I) the agency has actually accepted such property or services before such 7th day; or
(II) the contract (except in the case of a contract for the procurement of a brand-name commercial product for authorized resale) specifies a longer acceptance period, as determined by the contracting officer to be required to afford the agency a practicable opportunity to inspect and test the property furnished or evaluate the
Source: Supplied U.S. Code snapshot — release unconfirmed · 31 U.S.C. § 3901
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Federal law — U.S. Code and appendices · legal_authorities
The Corporation is authorized to use in the conduct of its business all its funds and other assets, including capital and net earnings therefrom, and all funds and other assets which have been or may hereafter be transferred or allocated to, borrowed by, or otherwise acquired by it.
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 714f
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** Except as provided by subsection (b) of this section, and except as otherwise provided in this title or insofar as such laws remain in force as rules or regulations of the Postal Service, no Federal law dealing with public or Federal contracts, property, works, officers, employees, budgets, or funds, including the provisions of chapters 5 and 7 of title 5, shall apply to the exercise of the powers of the Postal Service.
**(b)** The following provisions shall apply to the Postal Service:
(1) section 552 (public information), section 552a (records about individuals), section 552b (open meetings), section 3102 (employment of personal assistants for blind, deaf, or otherwise handicapped employees), section 3110 (restrictions on employment of relatives), section 3333 and chapters 72 (antidiscrimination; right to petition Congress) and 73 (suitability, security, and conduct of employees), section 5520 (withholding city income or employment taxes), and section 5532 11 See References in Text note below. (dual pay) of title 5, except that no regulation issued under such chapters or section shall apply to the Postal Service unless expressly made applicable;
(2) all provisions of title 18 dealing with the Postal Service, the mails, and officers or employees of the Government of the United States;
(3) [section 107 of title 20](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section107&num=0&edition=prelim) (known as the Randolph-Sheppard Act, relating to vending machines operated by the blind);
(4) the following provisions of title 40:
(A) sections 3114–3116, 3118, 3131, 3133, and 3141–3147; and
(B) chapters 37 and 173;
(5) chapters 65 and 67 of title 41;
(6) sections 2000d, 2000d–1—2000d–4 of title 42 (title VI, the Civil Rights Act of 196
Source: Supplied U.S. Code snapshot — release unconfirmed · 39 U.S.C. § 410
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Source** The Secretary shall provide the price support authorized or required herein through the Commodity Credit Corporation and other means available to him.
**(b) Authority of Secretary; factors considered** Except as otherwise provided in this Act, the amounts, terms, and conditions of price support operations and the extent to which such operations are carried out, shall be determined or approved by the Secretary. The following factors shall be taken into consideration in determining, in the case of any commodity for which price support is discretionary, whether a price-support operation shall be undertaken and the level of such support and, in the case of any commodity for which price support is mandatory, the level of support in excess of the minimum level prescribed for such commodity: (1) the supply of the commodity in relation to the demand therefor, (2) the price levels at which other commodities are being supported and, in the case of feed grains, the feed values of such grains in relation to corn, (3) the availability of funds, (4) the perishability of the commodity, (5) the importance of the commodity to agriculture and the national economy, (6) the ability to dispose of stocks acquired through a price-support operation, (7) the need for offsetting temporary losses of export markets, (8) the ability and willingness of producers to keep supplies in line with demand and (9), in the case of upland cotton, changes in the cost of producing such cotton.
**(c) Compliance by producer; program for diverted acres** Compliance by the producer with acreage allotments, production goals and marketing practices (including marketing quotas when authorized by law), prescribed by the Secretary, may be required as a condition of eligibility for price support. In admi
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1421
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** The Director of the Office of Management and Budget shall prescribe regulations to carry out [section 3902 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3902&num=0&edition=prelim). The regulations shall—
(1) provide that the required payment date is—
(A) the date payment is due under the contract for the item of property or service provided; or
(B) except as provided in paragraphs (10) and (11), 30 days after a proper invoice for the amount due is received if a specific payment date is not established by contract;
(2) for the acquisition of meat or a meat food product (as defined in section 2(a)(3) of the Packers and Stockyards Act, 1921 ([7 U.S.C. 182(3)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section182/3&num=0&edition=prelim))), including any edible fresh or frozen poultry meat, any perishable poultry meat food product, fresh eggs, and any perishable egg product, or of fresh or frozen fish (as defined in section 204(3) of the Fish and Seafood Promotion Act of 1986 ([16 U.S.C. 4003(3)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title16-section4003/3&num=0&edition=prelim)), provide a required payment date of not later than 7 days after the meat, meat food product, or fish is delivered; and
(3) for the acquisition of a perishable agricultural commodity (as defined in section 1(4) 11 See References in Text note below. of the Perishable Agricultural Commodities Act, 1930 ([7 U.S.C. 499a(4)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499a/4&num=0&edition=prelim))), provide a required payment date consistent with that Act;
(4) for the acquisition of dairy products (as defined in section 111(e) of the Dairy Production Stabilization Act
Source: Supplied U.S. Code snapshot — release unconfirmed · 31 U.S.C. § 3903
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section, added Pub. L. 97–452, § 1(18)(A), Jan. 12, 1983, 96 Stat. 2476, § 3905; renumbered § 3906 and amended Pub. L. 100–496, §§ 9(a)(1), 10, Oct. 17, 1988, 102 Stat. 2460, 2463, required submission of reports to Director of the Office of Management and Budget by 60th day after end of fiscal year by head of each agency concerning agency’s payment practices during that fiscal year.
A prior section 3906 was renumbered [section 3907 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3907&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 31 U.S.C. § 3906
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** A claim for an interest penalty not paid under this chapter may be filed under [section 7103 of title 41](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section7103&num=0&edition=prelim).
**(b)**
(1) An interest penalty under this chapter does not continue to accrue—
(A) after a claim for a penalty is filed under chapter 71 of title 41; or
(B) for more than one year.
(2) Paragraph (1) of this subsection does not prevent an interest penalty from accruing under section 7109(a)(1) and (b) of title 41 after a penalty stops accruing under this chapter. A penalty accruing under section 7109(a)(1) and (b) may accrue on an unpaid contract payment and on the unpaid penalty under this chapter.
**(c)** Except as provided in [section 3904 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3904&num=0&edition=prelim), this chapter does not require an interest penalty on a payment that is not made because of a dispute between the head of an agency and a business concern over the amount of payment or compliance with the contract. A claim related to the dispute, and interest payable for the period during which the dispute is being resolved, is subject to chapter 71 of title 41.
Source: Supplied U.S. Code snapshot — release unconfirmed · 31 U.S.C. § 3907
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Federal law — U.S. Code and appendices · legal_authorities
The head of an agency offered a discount by a business concern from an amount due under a contract for property or service in exchange for payment within a specified time may pay the discounted amount only if payment is made within the specified time. For the purpose of the preceding sentence, the specified time shall be determined from the date of the invoice. The head of the agency shall pay an interest penalty on an amount remaining unpaid in violation of this section. The penalty accrues as provided under sections 3902 and 3903 of this title, except that the required payment date for the unpaid amount is the last day specified in the contract that the discounted amount may be paid.
Source: Supplied U.S. Code snapshot — release unconfirmed · 31 U.S.C. § 3904
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