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Late Payment of Government Debts (Interest) Bill 2007

Part 2—Statutory interest on qualifying debts

6 Statutory interest payable for late payment of qualifying debt

(1)     Statutory interest is payable by the purchaser to the supplier for late payment of qualifying debt in accordance with the terms of this Act.

(2)     Statutory interest applies only to qualifying debts.

7 Implied term in qualifying contract

(1)     It is an implied term in a qualifying contract that any qualifying debt created by the contract carries simple interest subject to, and in accordance with, this Part and Part 3 of this Act.

(2)     Interest carried under an implied term is treated in the same way as interest carried under an express term.

8 Period for which statutory interest applies

(1)     Statutory interest is applied to a qualifying debt for the period specified in this section.

(2)     The application of statutory interest commences on the day after the relevant day for the debt, at the statutory rate of statutory interest.

(3)     The application of statutory interest ceases when the interest would cease to apply if it were carried under an express term in a contract.