§ 5-17-5-4 — Late payment penalties to subcontractors; accrual of interest

Indiana § 5-17-5-4

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 17: PUBLIC PURCHASES
• Ch. 5: Prompt Payment

Text

(a) This section applies to contractors receiving
late payment penalties under section 1 of this chapter.
(b) A contractor who is unable to make timely payments to a
subcontractor because of a state agency or political subdivision's failure
to make timely payments to the contractor shall pay interest to the
subcontractor at the rate of one percent (1%) per month on the amount
due the subcontractor after the contractor receives payment and any
penalty paid under this chapter.
(c) Any interest that remains unpaid to the subcontractor at the end
of any thirty (30) day period shall be added to the principal amount of
the debt. After that time, interest accrues on the aggregate of the
principal and unpaid interest.

Legislative History

As added by P.L.52-1988, SEC.3. Amended by P.L.44-1996, SEC.3.