§3904 — Title 31 Money and Finance | U.S. Code

Summary

When a business offers a discount for early payment, an agency can pay the lower amount only if it pays by the deadline. The deadline is counted from the invoice date. If the agency fails to pay in time, it must pay interest on the unpaid discounted amount. The interest is calculated the same way as under sections 3902 and 3903, except the due date used is the last day the contract allows the discount.

Title 31, §3904

Money and Finance — Source: USLM XML via OLRC

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 section 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.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 390431 App.:1802.May 21, 1982, Pub. L. 97–177, § 3, 96 Stat. 86. The word “otherwise” is omitted as surplus. The words “may pay the discounted amount” are substituted for “may make payment in an amount equal to the discounted price” to eliminate unnecessary words. The words “on such unpaid amount” and “the

Regulations

prescribed pursuant to” are omitted as surplus. The words “specified in the contract that the discounted amount may be paid” are substituted for “of the specified period of time described in subsection (a)” for clarity.

Editorial Notes

Amendments

1988—Pub. L. 100–496 inserted after first sentence “For the purpose of the preceding sentence, the specified time shall be determined from the date of the invoice.”

Statutory Notes and Related Subsidiaries

Effective Date

of 1988 AmendmentAmendment by Pub. L. 100–496 applicable to payments under contracts awarded, contracts renewed, and contract options exercised during or after the first fiscal quarter which begins more than 90 days after Oct. 17, 1988, see section 14(a) of Pub. L. 100–496, set out as a note under section 3902 of this title.

§3904 Limitations on discount payments