US (United States) Code. Title 31. Subtitle III: Financial management. Chapter 39: Prompt payment

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-CITE-

31 USC CHAPTER 39 - PROMPT PAYMENT 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 39 - PROMPT PAYMENT

-HEAD-

CHAPTER 39 - PROMPT PAYMENT

-MISC1-

Sec.

3901. Definitions and application.

3902. Interest penalties.

3903. Regulations.

3904. Limitations on discount payments.

3905. Payment provisions relating to construction contracts.

[3906. Repealed.]

3907. Relationship to other laws.

AMENDMENTS

1998 - Pub. L. 105-362, title XIII, Sec. 1301(c)(2)(C), Nov. 10,

1998, 112 Stat. 3293, struck out item 3906 "Reports".

1988 - Pub. L. 100-496, Sec. 9(b), Oct. 17, 1988, 102 Stat. 2463,

added item 3905 and redesignated former items 3905 and 3906 as 3906

and 3907, respectively.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in title 10 section 1095c; title 15

section 644; title 25 sections 450l, 458aaa-7, 2506; title 39

section 410.

-End-

-CITE-

31 USC Sec. 3901 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 39 - PROMPT PAYMENT

-HEAD-

Sec. 3901. Definitions and application

-STATUTE-

(a) In this chapter -

(1) "agency" has the same meaning given that term in section

551(1) of title 5 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 item 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 services

performed; or

(B) on the date of the invoice, if the agency has failed to

annotate the invoice with the date of receipt at the time of

actual receipt by the place or person designated by the agency

to first receive such invoice.

(5) a payment is deemed to be made on the date a check for

payment is dated or an electronic fund transfer is made.

(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.

(c) This chapter applies to the United States Postal Service.

However, the Postmaster General shall be responsible for issuing

the implementing procurement regulations, solicitation provisions,

and contract clauses for the United States Postal Service.

(d)(1) Notwithstanding subsection (a)(1) of this section, this

chapter, except section 3907 of this title, applies to the District

of Columbia Courts.

(2) A claim for an interest penalty not paid under this chapter

may be filed in the same manner as claims are filed with respect to

contracts to provide property or services for the District of

Columbia Courts.

(3)(A) Except as provided in subparagraph (B), an interest

penalty under this chapter does not continue to accrue for more

than one year or after a claim for an interest penalty is filed in

the manner described in paragraph (2), whichever is earlier.

(B) If a claim for an interest penalty is filed in the manner

described in paragraph (2) and interest is not available for such

claims under the laws and regulations governing claims under

contracts to provide property or services for the District of

Columbia Courts, interest will accrue under this chapter as

provided in paragraph (A) and from the date the claim is filed

until the date the claim is paid.

(4) Paragraph (3) of this subsection does not prevent an interest

penalty from accruing on a claim if such interest is available for

such claim under the laws and regulations governing claims under

contracts to provide property or services for the District of

Columbia Courts. Such interest may accrue on an unpaid contract

payment and on the unpaid penalty under this chapter.

(5) Except as provided in section 3904 of this title, 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 any interest payable

for the period during which the dispute is being resolved, is

subject to the laws and regulations governing claims under

contracts to provide property or services for the District of

Columbia Courts.

-SOURCE-

(Added Pub. L. 97-452, Sec. 1(18)(A), Jan. 12, 1983, 96 Stat. 2474;

amended Pub. L. 100-496, Sec. 2(a)-(c)(1), Oct. 17, 1988, 102 Stat.

2455; Pub. L. 105-277, div. A, Sec. 101(c) [title I, Sec. 162(a)],

Oct. 21, 1998, 112 Stat. 2681-121, 2681-148; Pub. L. 105-362, title

XIII, Sec. 1301(c)(2)(A), Nov. 10, 1998, 112 Stat. 3293.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3901(a) 31 App.:1805. May 21, 1982, Pub. L. 97-177,

Secs. 6, 7(c), 96 Stat. 87, 88.

3901(b) 31 App.:1806.

--------------------------------------------------------------------

In the chapter, the words "the head of" are added for clarity and

consistency in the revised title and with other titles of the

United States Code.

In subsection (a)(1), the word "Federal" is omitted as

unnecessary and for consistency in the revised title and with other

titles of the Code. The words "for this purpose" are omitted

because of the restatement. The words "the purpose of" and "or

more" are omitted as surplus.

In subsection (a)(5), the words "deemed to be" are substituted

for "considered" for consistency in the revised title and with

other titles of the Code.

In subsection (a)(6), the words "real or personal" are omitted as

surplus. The words "deemed to be" are added for consistency in the

revised title and with other titles of the Code.

In subsection (b), the words "the authority of" are omitted as

surplus.

AMENDMENTS

1998 - Subsec. (c). Pub. L. 105-362 struck out ", except section

3906 of this title," after "This chapter".

Subsec. (d). Pub. L. 105-277 added subsec. (d).

1988 - Subsec. (a)(4). Pub. L. 100-496, Sec. 2(a), amended par.

(4) generally. Prior to amendment, par. (4) read as follows: "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."

Subsec. (a)(5). Pub. L. 100-496, Sec. 2(b), amended par. (5)

generally, substituting "check for payment is dated or an

electronic fund transfer is made" for "check for the payment is

dated".

Subsec. (c). Pub. L. 100-496, Sec. 2(c)(1), added subsec. (c).

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by section 2(a), (b) of 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, and amendment by

section 2(c)(1) of Pub. L. 100-496 applicable with respect to all

obligations incurred on or after Jan. 1, 1989, see section 14(a),

(c) of Pub. L. 100-496, set out as a note under section 3902 of

this title.

SHORT TITLE OF 1988 AMENDMENT

Section 1 of Pub. L. 100-496 provided that: "This Act [enacting

section 3905 of this title, amending this section, sections 3902 to

3904 and 3906 of this title, section 644 of Title 15, Commerce and

Trade, and section 410 of Title 39, Postal Service, renumbering

sections 3905 and 3906 of this title as 3906 and 3907,

respectively, enacting provisions set out as notes under sections

3902, 3903, and 3906 of this title, and repealing provisions set

out as a note under section 3903 of this title] may be cited as the

'Prompt Payment Act Amendments of 1988'."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3903 of this title.

-End-

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31 USC Sec. 3902 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 39 - PROMPT PAYMENT

-HEAD-

Sec. 3902. Interest penalties

-STATUTE-

(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 of interest

established by the Secretary of the Treasury, and published in the

Federal Register, for interest payments under section 12 of the

Contract Disputes Act of 1978 (41 U.S.C. 611), 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)).

(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 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).

(4) Section 3907 of this title shall not apply to interest

penalty payments made under this subsection.

-SOURCE-

(Added Pub. L. 97-452, Sec. 1(18)(A), Jan. 12, 1983, 96 Stat. 2475;

amended Pub. L. 98-216, Sec. 1(6), Feb. 14, 1984, 98 Stat. 4; Pub.

L. 100-496, Sec. 3, Oct. 17, 1988, 102 Stat. 2456; Pub. L. 105-362,

title XIII, Sec. 1301(c)(2)(B), Nov. 10, 1998, 112 Stat. 3293.)

-MISC1-

HISTORICAL AND REVISION NOTES

1982 ACT

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3902(a) 31 App.:1801(a)(1), May 21, 1982, Pub. L. 97-177,

(b)(1) (2d, last Sec. 2(a)(1), (b)-(d), 96

sentences). Stat. 85.

3902(b) 31 App.:1801(b)(1)

(1st sentence).

3902(c) 31 App.:1801(b)(2).

3902(d) 31 App.:1801(c).

3902(e) 31 App.:1801(d).

--------------------------------------------------------------------

In subsection (a), the words "under section 3903 of this title"

are substituted for "by the Director of the Office of Management

and Budget" because of the restatement. The words "in accordance

with this section" are omitted as surplus.

In subsection (b), before clause (1), the words "on amounts due

to a business concern under this chapter . . . to the business

concern", "of the amount due", and "complete delivered . . . of

property or service concerned" are omitted as surplus.

In subsection (c), the words "which remains" are omitted as

surplus.

In subsection (e), the words "terms and" and "non-Federal" are

omitted as surplus. The word "Government" is added for consistency

in the revised title and with other titles of the United States

Code.

1984 ACT

This is necessary to correct cross-references in section 3902(b).

-REFTEXT-

REFERENCES IN TEXT

The Agricultural Act of 1949, referred to in subsec. (h)(2)(A),

is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, as amended, which is

classified principally to chapter 35A (Sec. 1421 et seq.) of Title

7, Agriculture. For complete classification of this Act to the

Code, see Short Title note set out under section 1421 of Title 7

and Tables.

-MISC2-

AMENDMENTS

1998 - Subsec. (b). Pub. L. 105-362 substituted "The" for "Except

as provided in section 3906 of this title, the".

1988 - Subsec. (a). Pub. L. 100-496, Sec. 3(a)(1), substituted

"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 12 of the Contract

Disputes Act of 1978 (41 U.S.C. 611), which is in effect at the

time the agency accrues the obligation to pay a late payment

interest penalty" for "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".

Subsec. (b). Pub. L. 100-496, Sec. 3(a)(2), struck out second

sentence which read as follows: "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) of this title, before the 4th day after the

required payment date;

"(2) when the item is an agricultural commodity described in

section 3903(3) 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."

Subsecs. (c) to (g). Pub. L. 100-496, Sec. 3(b), added subsecs.

(c) and (d) and redesignated former subsecs. (c) to (e) as (e) to

(g), respectively.

Subsec. (h). Pub. L. 100-496, Sec. 3(c), added subsec. (h).

1984 - Subsec. (b). Pub. L. 98-216 substituted "3903(2)" for

"3903(2)(A)" in par. (1) and "3903(3)" for "3903(2)(B)" in par.

(2).

EFFECTIVE DATE OF 1988 AMENDMENT

Section 14(a)-(c) of Pub. L. 100-496 provided that:

"(a) The amendments made by sections 2(a), 2(b), 3(a), 4 through

9, 12, and 13 of this Act [enacting section 3905 of this title,

amending this section, sections 3901, 3903, and 3904 of this title

and section 644 of Title 15, Commerce and Trade, renumbering

sections 3905 and 3906 of this title as sections 3906 and 3907,

respectively, and repealing provisions set out as a note under

section 3903 of this title] shall apply 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 the date of the enactment of this Act [Oct. 17, 1988].

"(b) The requirements of section 3902(c)(2) of title 31, United

States Code, as added by section 3(b) of this Act, shall apply to

payments under contracts awarded on or after October 1, 1989.

"(c) The amendments made by sections 2(c) and 3(c) of this Act

[amending this section, section 3901 of this title, and section 410

of Title 39, Postal Service] shall be applicable with respect to

all obligations incurred on or after January 1, 1989."

PAYMENT OF INTEREST PENALTIES BY DEPARTMENT OF DEFENSE

Pub. L. 107-117, div. A, title VIII, Sec. 8084, Jan. 10, 2002,

115 Stat. 2266, provided that: "Notwithstanding 31 U.S.C. 3902,

during the current fiscal year and hereafter, interest penalties

may be paid by the Department of Defense from funds financing the

operation of the military department or defense agency with which

the invoice or contract payment is associated."

Similar provisions were contained in the following prior

appropriation acts:

Pub. L. 106-259, title VIII, Sec. 8083, Aug. 9, 2000, 114 Stat.

692.

Pub. L. 106-79, title VIII, Sec. 8088, Oct. 25, 1999, 113 Stat.

1252.

Pub. L. 105-262, title VIII, Sec. 8092, Oct. 17, 1998, 112 Stat.

2319.

Pub. L. 105-56, title VIII, Sec. 8103, Oct. 8, 1997, 111 Stat.

1243.

INTEREST PENALTIES FOR LATE PAYMENT OF INTERIM PAYMENTS DUE UNDER

GOVERNMENT SERVICE CONTRACTS

Pub. L. 106-398, Sec. 1 [[div. A], title X, Sec. 1010], Oct. 30,

2000, 114 Stat. 1654, 1654A-251, as amended by Pub. L. 107-107,

div. A, title X, Sec. 1007, Dec. 28, 2001, 115 Stat. 1204, provided

that:

"(a) Prompt Payment Requirement for Interim Payments. - Under

regulations prescribed under subsection (c), the head of an agency

acquiring services from a business concern under a cost

reimbursement contract requiring interim payments who does not pay

the concern a required interim payment by the date that is 30 days

after the date of the receipt of a proper invoice shall pay an

interest penalty to the concern on the amount of the payment due.

The interest shall be computed as provided in section 3902(a) of

title 31, United States Code.

"(b) Regulations. - The Director of the Office of Management and

Budget shall prescribe regulations to carry out this section. Such

regulations shall be prescribed as part of the regulations

prescribed under section 3903 of title 31, United States Code.

"(c) Incorporation of Certain Provisions of Law. - The provisions

of chapter 39 of title 31, United States Code, shall apply to this

section in the same manner as if this section were enacted as part

of such chapter.

"(d) Effective Date. - Subsection (a) shall take effect on

December 15, 2000, and shall apply with respect to interim payments

that are due on or after such date under contracts entered into

before, on, or after that date. No interest shall accrue by reason

of that subsection for any period before that date."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3903, 3904, 3905 of this

title; title 42 sections 1395h, 1395u.

-End-

-CITE-

31 USC Sec. 3903 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 39 - PROMPT PAYMENT

-HEAD-

Sec. 3903. Regulations

-STATUTE-

(a) The Director of the Office of Management and Budget shall

prescribe regulations to carry out section 3902 of this title. 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) 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))), 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)), 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) (!1) of the Perishable Agricultural

Commodities Act, 1930 (7 U.S.C. 499a(4))), 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 of 1983

(7 U.S.C. 4502(e)), the acquisition of edible fats or oils, and

the acquisition of food products prepared from edible fats or

oils, provide a required payment date of not later than 10 days

after the date on which a proper invoice for the amount due has

been received by the agency acquiring such dairy products, fats,

oils, or food products;

(5) require periodic payments, in the case of a property or

service contract which does not prohibit periodic payments for

partial deliveries or other contract performance during the

contract period, upon -

(A) submission of an invoice for property delivered or

services performed during the contract period, if an invoice is

required by the contract; and

(B) either -

(i) acceptance of the property or services by an employee

of an agency authorized to accept the property or services;

or

(ii) the making of a determination by such an employee,

that the performance covered by the payment conforms to the

terms and conditions of the contract;

(6) in the case of a construction contract, provide for the

payment of interest on -

(A) a progress payment (including a monthly

percentage-of-completion progress payment or milestone payments

for completed phases, increments, or segments of any project)

that is approved as payable by the agency pursuant to

subsection (b) of this section and remains unpaid for -

(i) a period of more than 14 days after receipt of the

payment request by the place or person designated by the

agency to first receive such requests; or

(ii) a longer period, specified in the solicitation, if

required to afford the Government a practicable opportunity

to adequately inspect the work and to determine the adequacy

of the contractor's performance under the contract; and

(B) any amounts which the agency has retained pursuant to a

prime contract clause providing for retaining a percentage of

progress payments otherwise due to a contractor and that are

approved for release to the contractor, if such retained

amounts are not paid to the contractor by a date specified in

the contract or, in the absence of such a specified date, by

the 30th day after final acceptance;

(7) require that -

(A) each invoice be reviewed as soon as practicable after

receipt for the purpose of determining that such an invoice is

a proper invoice within the meaning of section 3901(a)(3) of

this title;

(B) any invoice determined not to be such a proper invoice

suitable for payment shall be returned as soon as practicable,

but not later than 7 days, after receipt, specifying the

reasons that the invoice is not a proper invoice; and

(C) the number of days available to an agency to make a

timely payment of an invoice without incurring an interest

penalty shall be reduced by the number of days by which an

agency exceeds the requirements of subparagraph (B) of this

paragraph;

(8) permit an agency to make payment up to 7 days prior to the

required payment date, or earlier as determined by the agency to

be necessary on a case-by-case basis; and

(9) prescribe the methods for computing interest under section

3903(c) (!1) of this title.

(b)(1) A payment request may not be approved under subsection

(a)(6)(A) of this section unless the application for such payment

includes -

(A) substantiation of the amounts requested; and

(B) a certification by the prime contractor, to the best of the

contractor's knowledge and belief, that -

(i) the amounts requested are only for performance in

accordance with the specifications, terms, and conditions of

the contract;

(ii) payments to subcontractors and suppliers have been made

from previous payments received under the contract, and timely

payments will be made from the proceeds of the payment covered

by the certification, in accordance with their subcontract

agreements and the requirements of this chapter; and

(iii) the application does not include any amounts which the

prime contractor intends to withhold or retain from a

subcontractor or supplier in accordance with the terms and

conditions of their subcontract.

(2) The agency shall return any such payment request which is

defective to the contractor within 7 days after receipt, with a

statement identifying the defect.

(c) A contract for the procurement of subsistence items that is

entered into under the prime vendor program of the Defense

Logistics Agency may specify for the purposes of section 3902 of

this title a single required payment date that is to be applicable

to an invoice for subsistence items furnished under the contract

when more than one payment due date would otherwise be applicable

to the invoice under the regulations prescribed under paragraphs

(2), (3), and (4) of subsection (a) or under any other provisions

of law. The required payment date specified in the contract shall

be consistent with prevailing industry practices for the

subsistence items, but may not be more than 10 days after the date

of receipt of the invoice or the certified date of receipt of the

items. The Director of the Office of Management and Budget shall

provide in the regulations under subsection (a) that when a

required payment date is so specified for an invoice, no other

payment due date applies to the invoice.

(d)(1) The contracting officer shall -

(A) compute the interest which a contractor shall be obligated

to pay under sections 3905(a)(2) and 3905(e)(6) of this title on

the basis of the average bond equivalent rates of 91-day Treasury

bills auctioned at the most recent auction of such bills prior to

the date the contractor received the unearned amount; and

(B) deduct the interest amount determined under subparagraph

(A) of this paragraph from the next available payment to the

contractor.

(2) Amounts deducted from payments to contractors under paragraph

(1)(B) shall revert to the Treasury.

-SOURCE-

(Added Pub. L. 97-452, Sec. 1(18)(A), Jan. 12, 1983, 96 Stat. 2476;

amended Pub. L. 100-496, Secs. 4-7, 13(a), Oct. 17, 1988, 102 Stat.

2457-2459, 2465; Pub. L. 102-190, div. A, title VIII, Sec. 842,

Dec. 5, 1991, 105 Stat. 1449; Pub. L. 106-65, div. A, title X, Sec.

1009, Oct. 5, 1999, 113 Stat. 738.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3903 31 App.:1801(a)(2). May 21, 1982, Pub. L. 97-177,

Sec. 2(a)(2), 96 Stat. 85.

--------------------------------------------------------------------

In the section, before clause (1), the words "The Director of the

Office of Management and Budget shall prescribe regulations to

carry out section 3902 of this title" are added because of the

restatement. In clause (1)(A), the words "the terms of" are omitted

as surplus. In clause (1)(B), the words "of the payment" are

omitted as surplus.

-REFTEXT-

REFERENCES IN TEXT

The Perishable Agricultural Commodities Act, 1930, referred to in

subsec. (a)(3), is act June 10, 1930, ch. 436, 46 Stat. 531, as

amended, which is classified generally to chapter 20A (Sec. 499a et

seq.) of Title 7, Agriculture. Section 1(4) of the Act was

redesignated section 1(b)(4) by Pub. L. 102-237, title X, Sec.

1011(1)(A), Dec. 13, 1991, 105 Stat. 1898, and is classified to

section 499a(b)(4) of Title 7. For complete classification of this

Act to the Code, see section 499r of Title 7 and Tables.

Section 3903(c) of this title, referred to in subsec. (a)(9), was

redesignated section 3903(d) by Pub. L. 106-65, div. A, title X,

Sec. 1009(1), Oct. 5, 1999, 113 Stat. 738.

-MISC2-

AMENDMENTS

1999 - Subsecs. (c), (d). Pub. L. 106-65 added subsec. (c) and

redesignated former subsec. (c) as (d).

1991 - Subsec. (a)(2). Pub. L. 102-190 inserted provisions

relating to fresh or frozen fish as defined in 16 U.S.C. 4003(3)

and substituted "meat, meat food product, or fish" for "meat or

meat food product".

1988 - Subsec. (a). Pub. L. 100-496, Sec. 6(1), designated

existing provisions as subsec. (a).

Subsec. (a)(2). Pub. L. 100-496, Sec. 13(a), included any edible

fresh or frozen poultry meat, any perishable poultry meat food

product, fresh eggs, and any perishable egg product.

Subsec. (a)(4). Pub. L. 100-496, Sec. 4, amended par. (4)

generally. Prior to amendment, par. (4) read as follows: "provide

separate required payment dates for a contract under which property

or service is provided in a series of partial executions or

deliveries to the extent the contract provides for separate

payments for partial execution or delivery; and".

Subsec. (a)(5). Pub. L. 100-496, Sec. 5(2), added par. (5).

Former par. (5) redesignated (7).

Subsec. (a)(6). Pub. L. 100-496, Sec. 6(2), added par. (6).

Subsec. (a)(7). Pub. L. 100-496, Sec. 7, added par. (7) and

struck out former par. (7), which read as follows: "require that,

within 15 days after an invoice is received, the head of an agency

notify the business concern of a defect or impropriety in the

invoice that would prevent the running of the time period specified

in clause (1)(B) of this section."

Pub. L. 100-496, Sec. 5(1), redesignated par. (5) as (7).

Subsec. (a)(8), (9). Pub. L. 100-496, Sec. 7, added pars. (8) and

(9).

Subsecs. (b), (c). Pub. L. 100-496, Sec. 6(3), added subsecs. (b)

and (c).

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment 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.

IMPLEMENTATION THROUGH FEDERAL ACQUISITION REGULATION

Section 11 of Pub. L. 100-496 provided that:

"(a) The Federal Acquisition Regulation shall be modified to

provide appropriate solicitation provisions and contract clauses

that implement chapter 39 of title 31, United States Code, as

amended by this Act [see Short Title of 1988 Amendment note set out

under section 3901 of this title], and the regulations prescribed

under section 3903 of such title (as amended).

"(b) The solicitation provisions and contract clauses required by

subsection (a) of this section shall include (but not be limited

to) the following matters:

"(1) Authority for a contracting officer to specify for a

contract or class of contracts a specific payment period, which -

"(A) in the case of payments for commercial items or

services, is similar to the payment period or periods permitted

in prevailing private industry contracting practices;

"(B) in the case of payments for noncommercial items and

services, does not exceed 30 days unless the circumstances of

the procurement action is determined to require a longer period

for payment and such determination is approved above the level

of the contracting officer;

"(C) in the case of payments for items of property or

services in an amount less than the amount specified as a small

purchase in section 303(g)(2) of the Federal Property and

Administrative Services Act of 1949 (41 U.S.C. 253(g)(2)), does

not exceed 15 days after the date of receipt of the invoice, if

-

"(i) the contract provides for such 'fast payment' terms;

"(ii) title to any property will vest in the Government

upon delivery (including delivery to a common carrier); and

"(iii) the business concern offers appropriate warranties

to furnish property or services conforming to the

requirements of the contract or purchase order, if payment

will be due prior to acceptance of the items or services; and

"(D) in the case of progress payments under construction

contracts, does not exceed 14 days, unless the solicitation

specifies a longer period which the contracting officer has

determined is required to afford the Government a practicable

opportunity to adequately inspect the work and to evaluate the

adequacy of the contractor's performance under the contract.

"(2) Requirements to make periodic payments, in the case of a

property or service contract which does not prohibit periodic

payments for partial deliveries or other contract performance

during the contract period, upon -

"(A) submission of an invoice for property delivered or

services performed during the contract period, if an invoice is

required by the contract; and

"(B) either -

"(i) acceptance of the property or services by an employee

of the contracting agency authorized to accept the property

or services; or

"(ii) the making of a determination by such an employee,

that the performance covered by the payment conforms to the

terms and conditions of the contract.

"(3) A conclusive presumption, exclusively for the purposes of

determining when an agency becomes obligated to pay a late

payment interest penalty (other than under construction

contracts), that the Federal Government has accepted property or

services by the 7th day after the date on which, in accordance

with the terms and conditions of the contract, the property is

delivered or final performance of the services is completed,

unless the solicitation specifies a longer period which is

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 services performed.

"(4) The limitation that the Federal Government may take a

discount offered by a contractor for early payment by the Federal

Government only in accordance with the time limits specified by

the contractor, determined in accordance with the second sentence

of section 3904 of title 31, United States Code.

"(5) The requirements of section 3902(c) of title 31, United

States Code.

"(6) The requirements of section 3903(a)(6) of title 31, United

States Code.

"(7) The requirements of section 3905 of title 31, United

States Code.

"(c) The regulations required by subsection (a) of this section

shall be published as proposed regulations for public comment as

provided in section 22 of the Office of Federal Procurement Policy

Act (41 U.S.C. 418b) within 120 days after the date of the

enactment of this Act [Oct. 17, 1988]."

EDIBLE FRESH OR FROZEN POULTRY MEAT, PERISHABLE POULTRY MEAT FOOD

PRODUCTS, FRESH EGGS, AND PERISHABLE EGG PRODUCTS

Pub. L. 98-181, title II, Sec. 2002, Nov. 30, 1983, 97 Stat.

1297, to the extent that it provided that the terms "meat" and

"meat food products" as used in 31 U.S.C. 3903(2) also included

edible fresh or frozen poultry meat, perishable poultry meat food

products, fresh eggs and perishable egg products, was stricken by

Pub. L. 100-496, Sec. 13(b), Oct. 17, 1988, 102 Stat. 2465,

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3904, 3905 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

31 USC Sec. 3904 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 39 - PROMPT PAYMENT

-HEAD-

Sec. 3904. Limitations on discount payments

-STATUTE-

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-

(Added Pub. L. 97-452, Sec. 1(18)(A), Jan. 12, 1983, 96 Stat. 2476;

amended Pub. L. 100-496, Sec. 8, Oct. 17, 1988, 102 Stat. 2460.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3904 31 App.:1802. May 21, 1982, Pub. L. 97-177,

Sec. 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.

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."

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3901, 3907 of this title.

-End-

-CITE-

31 USC Sec. 3905 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 39 - PROMPT PAYMENT

-HEAD-

Sec. 3905. Payment provisions relating to construction contracts

-STATUTE-

(a) In the event that a contractor, after making a certified

payment request to an agency pursuant to section 3903(b) of this

title, 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), 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 obligates the prime

contractor to pay to the subcontractor an interest penalty on

amounts due in the case of each payment not made in accordance

with the payment clause included in the subcontract pursuant to

paragraph (1) of this subsection -

(A) for the period beginning on the day after the required

payment date and ending on the date on which payment of the

amount due is made; and

(B) computed at the rate specified by section 3902(a) of this

title.

(c) The construction contract awarded by the agency shall further

require the prime contractor to include in each of its subcontracts

(for the purpose of performance of such construction contract) a

provision requiring the subcontractor to include a payment clause

and an interest penalty clause conforming to the standards of

subsection (b) of this section in each of its subcontracts and to

require each of its subcontractors to include such clauses in their

subcontracts with each lower-tier subcontractor or supplier.

(d) The clauses required by subsections (b) and (c) of this

section shall not be construed to impair the right of a prime

contractor or a subcontractor at any tier to negotiate, and to

include in their subcontract, provisions which -

(1) permit the prime contractor or a subcontractor to retain

(without cause) a specified percentage of each progress payment

otherwise due to a subcontractor for satisfactory performance

under the subcontract, without incurring any obligation to pay a

late payment interest penalty, in accordance with terms and

conditions agreed to by the parties to the subcontract, giving

such recognition as the parties deem appropriate to the ability

of a subcontractor to furnish a performance bond and a payment

bond;

(2) permit the contractor or subcontractor to make a

determination that part or all of the subcontractor's request for

payment may be withheld in accordance with the subcontract

agreement; and

(3) permit such withholding without incurring any obligation to

pay a late payment penalty if -

(A) a notice conforming to the standards of subsection (g) of

this section has been previously furnished to the

subcontractor; and

(B) a copy of any notice issued by a prime contractor

pursuant to subparagraph (A) of this paragraph has been

furnished to the Government.

(e) If a prime contractor, after making application to an agency

for payment under a contract but before making a payment to a

subcontractor for the subcontractor's performance covered by such

application, discovers that all or a portion of the payment

otherwise due such subcontractor is subject to withholding from the

subcontractor in accordance with the subcontract agreement, then

the prime contractor shall -

(1) furnish to the subcontractor a notice conforming to the

standards of subsection (g) of this section as soon as

practicable upon ascertaining the cause giving rise to a

withholding, but prior to the due date for subcontractor payment;

(2) furnish to the Government, as soon as practicable, a copy

of the notice furnished to the subcontractor pursuant to

paragraph (1) of this subsection;

(3) reduce the subcontractor's progress payment by an amount

not to exceed the amount specified in the notice of withholding

furnished under paragraph (1) of this subsection;

(4) pay the subcontractor as soon as practicable after the

correction of the identified subcontract performance deficiency,

and -

(A) make such payment within -

(i) 7 days after correction of the identified subcontract

performance deficiency (unless the funds therefor must be

recovered from the Government because of a reduction under

paragraph (5)(A)); or

(ii) 7 days after the contractor recovers such funds from

the Government; or

(B) incur an obligation to pay a late payment interest

penalty computed at the rate specified by section 3902(a) of

this title;

(5) notify the Government, upon -

(A) reduction of the amount of any subsequent certified

application for payment; or

(B) payment to the subcontractor of any withheld amounts of a

progress payment, specifying -

(i) the amounts of the progress payments withheld under

paragraph (1) of this subsection; and

(ii) the dates that such withholding began and ended; and

(6) be obligated to pay to the Government an amount equal to

interest on the withheld payments (computed in the manner

provided in section 3903(c) of this title), from the 8th day

after receipt of the withheld amounts from the Government until -

(A) the day the identified subcontractor performance

deficiency is corrected; or

(B) the date that any subsequent payment is reduced under

paragraph (5)(A).

(f)(1) If a prime contractor, after making payment to a

first-tier subcontractor, receives from a supplier or subcontractor

of the first-tier subcontractor (hereafter referred to as a

"second-tier subcontractor") a written notice in accordance with

section 3133(b) of title 40, asserting a deficiency in such

first-tier subcontractor's performance under the contract for which

the prime contractor may be ultimately liable, and the prime

contractor determines that all or a portion of future payments

otherwise due such first-tier subcontractor is subject to

withholding in accordance with the subcontract agreement, then the

prime contractor may, without incurring an obligation to pay an

interest penalty under subsection (e)(6) of this section -

(A) furnish to the first-tier subcontractor a notice conforming

to the standards of subsection (g) of this section as soon as

practicable upon making such determination; and

(B) withhold from the first-tier subcontractor's next available

progress payment or payments an amount not to exceed the amount

specified in the notice of withholding furnished under

subparagraph (A) of this paragraph.

(2) As soon as practicable, but not later than 7 days after

receipt of satisfactory written notification that the identified

subcontract performance deficiency has been corrected, the prime

contractor shall pay the amount withheld under paragraph (1)(B) of

this subsection to such first-tier subcontractor, or shall incur an

obligation to pay a late payment interest penalty to such

first-tier subcontractor computed at the rate specified by section

3902(a) of this title.

(g) A written notice of any withholding shall be issued to a

subcontractor (with a copy to the Government of any such notice

issued by a prime contractor), specifying -

(1) the amount to be withheld;

(2) the specific causes for the withholding under the terms of

the subcontract; and

(3) the remedial actions to be taken by the subcontractor in

order to receive payment of the amounts withheld.

(h) A prime contractor may not request payment from the agency of

any amount withheld or retained in accordance with subsection (d)

of this section until such time as the prime contractor has

determined and certified to the agency that the subcontractor is

entitled to the payment of such amount.

(i) A dispute between a contractor and subcontractor relating to

the amount or entitlement of a subcontractor to a payment or a late

payment interest penalty under a clause included in the subcontract

pursuant to subsection (b) or (c) of this section does not

constitute a dispute to which the United States is a party. The

United States may not be interpleaded in any judicial or

administrative proceeding involving such a dispute.

(j) Except as provided in subsection (i) of this section, this

section shall not limit or impair any contractual, administrative,

or judicial remedies otherwise available to a contractor or a

subcontractor in the event of a dispute involving late payment or

nonpayment by a prime contractor or deficient subcontract

performance or nonperformance by a subcontractor.

(k) A contractor's obligation to pay an interest penalty to a

subcontractor pursuant to the clauses included in a subcontract

under subsection (b) or (c) of this section may not be construed to

be an obligation of the United States for such interest penalty. A

contract modification may not be made for the purpose of providing

reimbursement of such interest penalty. A cost reimbursement claim

may not include any amount for reimbursement of such interest

penalty.

-SOURCE-

(Added Pub. L. 100-496, Sec. 9(a)(2), Oct. 17, 1988, 102 Stat.

2460; amended Pub. L. 107-217, Sec. 3(h)(7), Aug. 21, 2002, 116

Stat. 1300.)

-MISC1-

PRIOR PROVISIONS

A prior section 3905 was renumbered section 3906 of this title.

AMENDMENTS

2002 - Subsec. (f)(1). Pub. L. 107-217 substituted "section

3133(b) of title 40" for "section 2 of the Act of August 24, 1935

(40 U.S.C. 270b)".

EFFECTIVE DATE

Section 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 an Effective Date

of 1988 Amendment note under section 3902 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3903 of this title.

-End-

-CITE-

31 USC Sec. 3906 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 39 - PROMPT PAYMENT

-HEAD-

[Sec. 3906. Repealed. Pub. L. 105-362, title XIII, Sec. 1301(c)(1),

Nov. 10, 1998, 112 Stat. 3293]

-MISC1-

Section, added Pub. L. 97-452, Sec. 1(18)(A), Jan. 12, 1983, 96

Stat. 2476, Sec. 3905; renumbered Sec. 3906 and amended Pub. L.

100-496, Secs. 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.

-End-

-CITE-

31 USC Sec. 3907 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 39 - PROMPT PAYMENT

-HEAD-

Sec. 3907. Relationship to other laws

-STATUTE-

(a) A claim for an interest penalty not paid under this chapter

may be filed under section 6 of the Contract Disputes Act of 1978

(41 U.S.C. 605).

(b)(1) An interest penalty under this chapter does not continue

to accrue -

(A) after a claim for a penalty is filed under the Contract

Disputes Act of 1978 (41 U.S.C. 601 et seq.); or

(B) for more than one year.

(2) Paragraph (1) of this subsection does not prevent an interest

penalty from accruing under section 12 of the Contract Disputes Act

of 1978 (41 U.S.C. 611) after a penalty stops accruing under this

chapter. A penalty accruing under section 12 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, 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 the Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.).

-SOURCE-

(Added Pub. L. 97-452, Sec. 1(18)(A), Jan. 12, 1983, 96 Stat. 2477,

Sec. 3906; renumbered Sec. 3907, Pub. L. 100-496, Sec. 9(a)(1),

Oct. 17, 1988, 102 Stat. 2460.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

3906(a) 31 App.:1803(a)(1). May 21, 1982, Pub. L. 97-177,

Sec. 4, 96 Stat. 87.

3906(b) 31 App.:1803(a)(2),

(3).

3906(c) 31 App.:1803(b).

--------------------------------------------------------------------

In the section, the words "be construed to" are omitted as

surplus.

In subsection (a), the words "not paid under this chapter" are

substituted for "which a Federal agency has failed to pay in

accordance with the requirements of section 2 or 3 of this chapter"

to eliminate unnecessary words.

In subsection (b)(2), the word "accruing" is added for clarity.

The word "both" is omitted as surplus.

In subsection (c), the words "with respect to disputes concerning

discounts", "by the required payment date", and "other allegations

concerning" are omitted as surplus.

-REFTEXT-

REFERENCES IN TEXT

The Contract Disputes Act of 1978, referred to in subsecs.

(b)(1)(A) and (c), is Pub. L. 95-563, Nov. 1, 1978, 92 Stat. 2383,

as amended, which is classified principally to chapter 9 (Sec. 601

et seq.) of Title 41, Public Contracts. For complete classification

of this Act to the Code see Short Title note set out under section

601 of Title 41 and Tables.

-MISC2-

AMENDMENTS

1988 - Pub. L. 100-496 renumbered section 3906 of this title as

this section.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3901, 3902 of this title.

-End-

-CITE-

31 USC SUBTITLE IV - MONEY 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

-HEAD-

SUBTITLE IV - MONEY

-MISC1-

Chap. Sec.

51. Coins and Currency 5101

53. Monetary Transactions 5301

-End-