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UNITED STATES - STANDARD ARTICLES
25. CHARGES FOR DELINQUENT PAYMENTS
(a) The State shall be subject to interest, administrative, and penalty charges n delinquent
payments. If a payment is not received by the due date, the State shall pay an inter st charge on
the delinquent payment for each day the payment i m went beyond - the due date. If a
payment becomes 60 days delinquent, the State shall pay, in addition to the interes charge, an
administrative charge to cover additional costs of billing and processing the delinq ient payment.
If a payment is delinquent 90 days or more, the State shall pay, in addition to the it erest and
administrative charges, a penalty charge for each day the payment is delinquent be and the due
date, based on the remaining balance of the payment due at the rate of 6 percent pe year. The
State shall also pay any fees incurred for debt collection services associated with a elinquent
payment.
(b) n the
F6d�r�l- Itegisk� Iij +hP Tl artmPnt of the Treasury for application to wle duc pwim `-, `he
hfte, rust ratr of 0.5 Fer en h, on h� 'F14e4nWwAt *ke
V
(c) When a partial payment on a delinquent,account is received; the amount received shall
be applied first to the penalty charges, second, to the administrative charges, third to the accrued
interest, and finally to the overdue payment.
26. GENERAL (JBLIGA ON -- BENEFITS CONDITIONED UPON PAYMENT
(a) The obligation of the State to pay the United States as provided in this contract is a
general obligation of the State notwithstanding the manner in which the obligation may be
distributed among the Skate's water users and notwithstanding the default of individual water
users in their obligations to the State.
(b) The payment of charges becoming due pursuant to this contract is a condition precedent
to receiving benefits under this contract. The United States shall not make water available to the
State through Animas La Plata project facilities during any period in which the State is in arrears
in the advance payment of any operation and maintenance charges due the United States or is in
arrears for more than 12 months in the payment of any construction charges due the United
States, The State shall not deliver water under the terms and conditions of this contract for lands
or parties that are in arrears in the advance payment of operation and maintenance charges, or is
in arrears more than 12 months in the payment of construction charges as levied or established
by the State.
27. CONFIRMATION OF CONTRACT
Promptly after the execution of this contract, the State shall provide evidence to the
Contracting Officer that, pursuant to the laws of the State of Colorado, the State is a legally
27
Comment [BOR3]: This would meet State
requirements.
08/10/11 - Reclamation ML to run by finance folks.
012012 ML To contact Policy — Ultimately could be
a Treasury call.
012012 State to further discuss with Controller
030712 CB will provide precise language.
State CRS 34- 20-202 sec24
COmrwAt ISOM]: 032112 — Further review is
Comment [BORS]: Same as above comment.
08/10111 CB to provide further review /input
012012 Same as above
030712 CB will provide precise language.
Comment [13OR6]: 031512 U.S. offers the
following verbiage:
"The interest rate charged shall be the greater of
either the Current Value of Funds Rate prescribed
annually in the Federal Register by the Department
of the Treasury for application to overdue payments,
or the interest rate of 0.5 percent per month."
it more accurately reflects the rate we are talking
about, and we cannot accept the state's 1% cap.
Here is a description of the rate and shows its
historic IeveL
htto //www.fms.trew.aoy/cvfr/index,htmI
Here is a Treasury Bulletin that also explains it
hap / /www.f ns trees govhf nNol1/1 2-01himl
Here is the annual Federal Register notice
announcing the rate:
httr)://www.eno.izovlfdsys/okgfFR-201 1-11-
23/udf/2011 -30160 odf
The citation for the requirement to charge this rate
31 USC 3717 is identical to the authority cited in the
D&S on this standard article.