PAYMENT OF CHARGES
18. (1) Subject to subsection (2), all charges, except those that are payable in advance, become due and payable
(a) where an invoice is issued in respect of the charges, on the day on which the invoice is issued; or
(b) where no invoice is issued in respect of the charges, on the day on which the services to which the charges relate are received.
(2) When payment in full has not been received by the due date established pursuant to subsection (1), interest shall be charged
(a) where an invoice has been issued, commencing on the thirtieth day after the day on which the invoice was issued; or
(b) where no invoice has been issued, commencing on the first day of the second month after the month in which the services were received.
(3) The interest referred to in subsection (2) shall be calculated monthly on the outstanding amount, which amount shall consist of the amount of principal owing plus any accrued interest.
(4) Where a payment is made, the period for which interest is charged in respect of the amount of the payment shall end on the day before the day on which the payment is received by the Minister.
(5) The rate of interest shall be adjusted monthly and shall be three per cent plus the bank rate in effect at the close of business on the last business day of the previous month.
(6) For the purposes of subsection (5), “bank rate” means the rate of interest established by the Bank of Canada as the minimum rate at which the Bank of Canada makes short-term advances to members of the Canadian Payments Association.
- SOR/86-1083, s. 1;
- SOR/88-120, s. 11(E);
- SOR/91-85, s. 12;
- SOR/94-324, s. 5.
- Date modified: