(a) Upon payment by an agency, a business which has acquired under contract, property or services in connection with its contract with such agency from a subcontractor or supplier shall pay the subcontractor or supplier within thirty (30) days after receiving payment from the agency.

Terms Used In Tennessee Code 12-4-707

  • Agency: means any entity of the state government, as defined in §. See Tennessee Code 12-4-702
  • Business: means a business organization in any form, institution, association, profession, occupation or calling of any kind, whether or not conducted for profit. See Tennessee Code 12-4-702
  • Contract: A legal written agreement that becomes binding when signed.
  • Month: means a calendar month. See Tennessee Code 1-3-105
  • Property: means anything of value, including, but not limited to, real estate, tangible and intangible personal property, contract rights, choses-in-action and other interests in or claims to wealth, admission or transportation tickets, captured or domestic animals, electric or other power and signatures which purport to create, maintain or extinguish any legal obligation. See Tennessee Code 12-4-702
(b) Interest at the rate of one and one-half percent (11/2%) per month shall accrue and is due any subcontractor or supplier who is not paid within thirty (30) days after the business receives payment from the agency, unless otherwise provided by contract between the agency and the business, or by contract between the business and the subcontractor or supplier. Interest begins to accrue on the thirty-first day at the rate specified in this subsection (b).
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