Common use of Payment, Interest and Late Payments Clause in Contracts

Payment, Interest and Late Payments. County’s payment for Services and goods shall be governed by Chapter 2251 of the Texas Government Code. An invoice shall be deemed overdue the 31st day after the later of (1) the date County receives the goods under this Agreement; (2) the date the performance of the Services under this Agreement is completed; or (3) the date the Xxxxxxxxxx County Auditor receives an invoice for the goods or Services. Interest charges for any overdue payments shall be paid by County in accordance with Texas Government Code Section 2251.025. More specifically, the rate of interest that shall accrue on a late payment is the rate in effect on September 1 of County’s fiscal year in which the payment becomes due. The said rate in effect on September 1 shall be equal to the sum of one percent (1%); and (2) the prime rate published in the Wall Street Journal on the first day of July of the preceding fiscal year that does not fall on a Saturday or Sunday. In the event that an error appears in an invoice submitted by Provider, County shall notify Provider of the error not later than the twenty first (21st) day after the date County receives the invoice. If the error is resolved in favor of Provider, Provider shall be entitled to receive interest on the unpaid balance of the invoice submitted by Provider beginning on the date that the payment for the invoice became overdue. If the error is resolved in favor of the County, Provider shall submit a corrected invoice that must be paid in accordance within the time set forth above. The unpaid balance accrues interest as provided by Chapter 2251 of the Texas Government Code if the corrected invoice is not paid by the appropriate date.