A. Any agency which purchases or procures goods and services from a nongovernmental entity on account shall pay the account in full within thirty days after receipt of goods or services and correct notice of amount due in writing to the agency or shall pay interest on the outstanding balance at the rate prescribed in section 44-1201 until the account is paid in full, unless a good faith dispute exists as to the agency’s obligation to pay all or a portion of the account.
Terms Used In Arizona Laws 35-342
- Agency: means any state agency, school district or office or agency established by either title 11 or a county board of supervisors. See Arizona Laws 35-341
- Goods: means all personal property purchased, procured or contracted for by an agency, including leases of real property or other arrangements for the use of space. See Arizona Laws 35-341
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Services: means all services purchased, procured or contracted for by an agency, including construction services. See Arizona Laws 35-341
- Writing: includes printing. See Arizona Laws 1-215
B. Any nongovernmental entity which purchases or procures goods or services from another nongovernmental entity on account for the purpose of providing such goods or services to an agency shall pay the account when due in full in accordance with current industry standards relating to the time of payment or in no event later than thirty days after receipt of the goods or services and correct notice in writing of the amount due on the account or shall pay interest on the outstanding balance at the rate prescribed in section 44-1201, or at such other interest rate or other terms as may be agreed in writing by the parties, until the account is paid in full, unless a good faith dispute exists as to the obligation to pay all or a portion of the account. If the delay in payment is caused by the agency and no interest or payment is received by the nongovernmental entity on the account, interest shall not be paid to the other nongovernmental entity on the account under this section unless otherwise agreed in writing by the parties.
C. The accounts of the agency referred to in this section shall not be deemed paid until all interest provided for under subsection A of this section is paid in full. If a dispute as to the amount due under this section relates only to a portion of an account due interest shall be paid on the remaining sums due on the account until paid.