New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter X - Power Authority Of The State Of New York
Part 463 - Prompt Payment Policy
Section 463.4 - Prompt payment procedure

Current through Register Vol. 46, No. 12, March 20, 2024

(a) A contractor shall request payment under a contract by submitting a proper invoice to the authority at its designated payment office at the time and in the manner specified in the contract.

(b) The authority shall have 15 calendar days after receipt of an invoice at its designated payment office to notify the contractor of certain facts and conditions, including but not limited to those listed below, which, in the opinion of the controller, justify extension of the statutory payment period:

(1) there is a defect in the delivered goods, property or services;

(2) there is a defect in the invoice;

(3) there are suspected defects or improprieties of any kind, the existence of which prevent the commencement of the statutory payment period;

(4) prior to payment a statutory or contractual provision requires an inspection period or an audit to determine the resources applied or used by the contractor in fulfilling the contract terms;

(5) a proper invoice must be examined by the Federal government prior to payment;

(6) the authority is prevented from makng payment by reason of filing of a lien, attachment, other legal process or requirement of law.

Any time taken to satisfy or rectify any such facts or conditions shall extend the date by which contract payment must be made in order for the authority not to become liable for interest payments by an equal period of time.

(c) Should the authority fail to notify a contractor of such facts and conditions within 15 calendar days of the invoice received date, the number of days allowed for payment of the corrected proper invoice will be reduced by the number of days between the 15th day and the day that notification was transmitted to the contractor. Should the authority, in such situations, fail to provide reasonable grounds for its contention that a fact or condition justifying a time extension exists, the date by which contract payment must be made in order for the authority not to become liable for interest payments shall be calculated from the invoice received date.

(d) The authority shall make payment within 45 calendar days after an invoice received date. Effective July 1, 1989, the authority shall make payment within 30 calendar days, excluding legal holidays, after an invoice received date occurring after that date.

(e) Except for the payments described in section 464.5 of this Title, every payment by the authority to a contractor pursuant to a contract is eligible for interest should the authority fail to make such payment within 45 days after the invoice received date for contracts entered into between April 30, 1988 and June 30, 1989 and within 30 days on or after July 1, 1989.

(f) The authority shall not be liable for interest on any retention amounts withheld by the authority in accordance with the terms of the contract.

(g) Interest shall be computed at the rate set by the State Tax Commission for corporate taxes pursuant to paragraph (1) of subsection (e) of section 1096 of the Tax Law.

(h) The authority has available funds in its custody to pay all interest penalties.

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