21 CRR-NY 5907.4NY-CRR
21 CRR-NY 5907.4
21 CRR-NY 5907.4
5907.4 Prompt payment procedure.
(a) A contractor shall request payment under a contract by submitting a proper invoice to the foundation at its designated payment office at the time and in the manner specified in the contract.
(b) The foundation shall have 15 calendar days after receipt of a proper invoice at its designated payment office to notify the contractor of certain facts and conditions, including but not limited to those listed below, which in the opinion of the foundation, justify a delay of the prompt payment:
(1) there is a defect in the delivered goods, property or services;
(2) there is a defect in the invoice;
(3) there are suspected improprieties of any kind;
(4) prior to payment a statutory or contractual provision requires an inspection period or an audit to determine the resources applied or used by the contractor in fulfilling the contract terms;
(5) a proper invoice must be examined by the Federal government prior to payment;
(6) the foundation is prevented from making payment by reason of the existence of a lien attachment, or other legal restriction;
(7) the necessary State government appropriation required to authorize payment has yet to be enacted; or
(8) the contractor has failed to submit a proper invoice or other material in accordance with the terms of the contract. Any time taken to satisfy or rectify any of the above facts or conditions or any delay in submission of required material shall extend the date by which prompt payment must be made by an equal period of time.
(c) Should the foundation fail to notify a contractor of such facts and conditions within 15 calendar days of the receipt of an invoice, the number of days allowed for payment of the corrected proper invoice will be reduced by the number of days between the 15th day and the day that notification was transmitted to the contractor. Should the foundation, in such situations, fail to provide reasonable grounds for its contention that a fact or condition justifying a time extension exists, the date by which contract payment must be made in order for the foundation not to become liable for interest payments shall be calculated from the invoice received date.
(d) The foundation shall make payment on a proper invoice within 30 calendar days after receipt of the proper invoice, excluding legal holidays.
(e) Except for payments described in subdivision (b) of this section and section 5907.5 of this Part, every payment by the foundation to a contractor pursuant to a proper invoice is eligible for interest should the foundation fail to make such payment within 30 days after the receipt of the proper invoice, excluding legal holidays.
(f) The foundation shall not be liable for interest on any retention amounts withheld by the foundation in accordance with the terms of the contract.
(g) Interest shall be computed at the rate set by the State Tax Commission for corporate taxes pursuant to paragraph 1 of subsection (e) of section 1096 of the Tax Law.
(h) The foundation has available funds in its custody to pay all interest penalties.
21 CRR-NY 5907.4
Current through June 30, 2021
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