§ 3904. — Limitations on discount payments.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 31USC3904]
TITLE 31--MONEY AND FINANCE
SUBTITLE III--FINANCIAL MANAGEMENT
CHAPTER 39--PROMPT PAYMENT
Sec. 3904. Limitations on discount payments
The head of an agency offered a discount by a business concern from
an amount due under a contract for property or service in exchange for
payment within a specified time may pay the discounted amount only if
payment is made within the specified time. For the purpose of the
preceding sentence, the specified time shall be determined from the date
of the invoice. The head of the agency shall pay an interest penalty on
an amount remaining unpaid in violation of this section. The penalty
accrues as provided under sections 3902 and 3903 of this title, except
that the required payment date for the unpaid amount is the last day
specified in the contract that the discounted amount may be paid.
(Added Pub. L. 97-452, Sec. 1(18)(A), Jan. 12, 1983, 96 Stat. 2476;
amended Pub. L. 100-496, Sec. 8, Oct. 17, 1988, 102 Stat. 2460.)
Historical and Revision Notes
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Revised Section Source (U.S. Code) Source (Statutes at Large)
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3904................................. 31 App.:1802. May 21, 1982, Pub. L. 97-177, Sec. 3, 96
Stat. 86.
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The word ``otherwise'' is omitted as surplus. The words ``may pay
the discounted amount'' are substituted for ``may make payment in an
amount equal to the discounted price'' to eliminate unnecessary words.
The words ``on such unpaid amount'' and ``the regulations prescribed
pursuant to'' are omitted as surplus. The words ``specified in the
contract that the discounted amount may be paid'' are substituted for
``of the specified period of time described in subsection (a)'' for
clarity.
Amendments
1988--Pub. L. 100-496 inserted after first sentence ``For the
purpose of the preceding sentence, the specified time shall be
determined from the date of the invoice.''
Effective Date of 1988 Amendment
Amendment by Pub. L. 100-496 applicable to payments under contracts
awarded, contracts renewed, and contract options exercised during or
after the first fiscal quarter which begins more than 90 days after Oct.
17, 1988, see section 14(a) of Pub. L. 100-496, set out as a note under
section 3902 of this title.
Section Referred to in Other Sections
This section is referred to in sections 3901, 3907 of this title.
