Prompt Payment Act 1982

The Prompt Payment Act was enacted on May 21, 1982, to require the Federal Government to pay interest on overdue payments. The law applies to property or services acquired from a business concern and mandates that each Federal agency prescribe regulations for timely payments. Interest penalties are paid to the business concern at a rate determined by the Secretary of the Treasury, with specific payment dates for different types of acquisitions. The Act also includes provisions for filing reports on interest penalty payments made and an analysis of progress in reducing such payments.