Arizona § 35-342 - Payment of agency accounts; delinquency; interest

§ 35-342. Payment of agency accounts; delinquency; interest

A. Any agency which purchases or procures goods and services from a nongovernmental entity on account shall pay the account in full within thirty days after receipt of goods or services and correct notice of amount due in writing to the agency or shall pay interest on the outstanding balance at the rate prescribed in section 44-1201 until the account is paid in full, unless a good faith dispute exists as to the agency's obligation to pay all or a portion of the account.

B. Any nongovernmental entity which purchases or procures goods or services from another nongovernmental entity on account for the purpose of providing such goods or services to an agency shall pay the account when due in full in accordance with current industry standards relating to the time of payment or in no event later than thirty days after receipt of the goods or services and correct notice in writing of the amount due on the account or shall pay interest on the outstanding balance at the rate prescribed in section 44-1201, or at such other interest rate or other terms as may be agreed in writing by the parties, until the account is paid in full, unless a good faith dispute exists as to the obligation to pay all or a portion of the account. If the delay in payment is caused by the agency and no interest or payment is received by the nongovernmental entity on the account, interest shall not be paid to the other nongovernmental entity on the account under this section unless otherwise agreed in writing by the parties.

C. The accounts of the agency referred to in this section shall not be deemed paid until all interest provided for under subsection A of this section is paid in full. If a dispute as to the amount due under this section relates only to a portion of an account due interest shall be paid on the remaining sums due on the account until paid.