41-U.S.C.-7109

§7109 – Interest

Pathway

Title 41 > Subtitle III > Chapter 71 > Section 7109

Details

• Reference: Section 7109
• Legend: §7109 – Interest
• USCode Year: 2013

Provision Content

(a) Period.—

(1) In general.—Interest on an amount found due a contractor on a claim shall be paid to the contractor for the period beginning with the date the contracting officer receives the contractors claim, pursuant to section 7103(a) of this title, until the date of payment of the claim.

(2) Defective certification.—On a claim for which the certification under section 7103(b)(1) of this title is found to be defective, any interest due under this section shall be paid for the period beginning with the date the contracting officer initially receives the contractors claim until the date of payment of the claim.

(b) Rate.—Interest shall accrue and be paid at a rate which the Secretary of the Treasury shall specify as applicable for each successive 6-month period. The rate shall be determined by the Secretary of the Treasury taking into consideration current private commercial rates of interest for new loans maturing in approximately 5 years.

(Pub. L. 111–350, §3, Jan. 4, 2011, 124 Stat. 3825.)

In subsection (a)(2), the words on or after the date of the enactment of this Act, the later of, and or the date of the enactment of this Act are omitted as obsolete.

Subsection (b) is substituted for The interest provided for in this section shall be paid at the rate established by the Secretary of the Treasury pursuant to Public Law 92–41 (85 Stat. 97) for the Renegotiation Board to eliminate obsolete language and to codify the criteria under which the interest rate is computed. Section 2(a)(3) of the Act of July 1, 1971 (Pub. L. 92–41, 85 Stat. 97), amended section 105(b)(2) of the Renegotiation Act of 1951 (Mar. 23, 1951, ch. 15, 65 Stat. 13) by adding provisions substantially similar to those enacted here. However, the Renegotiation Act of 1951 (Mar. 23, 1951, ch. 15, 65 Stat. 7) was omitted from the Code pursuant to section 102(c)(1) of the Act (65 Stat. 8), amended several times, the last being Public Law 94–185 (89 Stat. 1061), which provided that most provisions of that Act do not apply to receipts and accruals attributable to contract performance after September 30, 1976, and in view of the termination of the Renegotiation Board and the transfer of property and records of the Board to the Administrator of the General Services Administration on March 31, 1979, pursuant to Public Law 95–431 (92 Stat. 1043). Although the Renegotiation Board is no longer in existence, Federal agencies, including the General Services Administration, are required to use interest rates that are computed under the criteria set out in this subsection. See 31:3902(a) and the website of the Bureau of the Public Debt, available at http://www.publicdebt.treas.gov/opd/opdprmt2.htm. For an example of publication of rates under the criteria enacted here, see Federal Register, volume 67, number 247, page 78566, December 24, 2002.

U.S. Encyclopedia of Law Coverage

41-U.S.C.-6705 in the Legal Encyclopedia: Public Contracts

In this entry about 41-U.S.C.-6705, find legal reference material, bibliographies and premiere content related to public contracts in the American Encyclopedia of Law, presenting a comprehensive view of the United States public contracts-specific issues, written by authorities in the field.

41-U.S.C.-6704 in the Legal Encyclopedia: Contracts

In this entry about 41-U.S.C.-6704, find legal reference material, bibliographies and premiere content related to contracts in the American Encyclopedia of Law, presenting a comprehensive view of the United States contracts-specific issues, written by authorities in the field.

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