 |
D.C. Municipal Regulations (Last Updated: September 13, 2017) |
 |
Title 27. CONTRACTS AND PROCUREMENT |
|
Chapter 27-32. CONTRACT FINANCING AND FUNDING |
Section 27-3235. DEFERRED PAYMENT AGREEMENTS
-
3235.1The arrangement for deferred payment shall be in the form of a written agreement providing for deferred payment of the debt. The agreement shall be signed by the contracting officer and the contractor.
3235.2The deferred payment agreement shall include appropriate covenants and securities, in a form approved by the Director, and shall be limited to the shortest practicable maturity.
3235.3At a minimum, the contracting officer shall include the following in the deferred payment agreement:
(a)A description of the debt;
(b)The date of the first demand for payment;
(c)Notice of interest charges pursuant to §3236;
(d)The method for making payments and the office to which the payments shall be made;
(e)A requirement for the contractor to submit financial information requested by the District, and for reasonable access to the contractor's records and property by District representatives; and
(f)Provisions for termination of the deferred payment arrangement and acceleration of the maturity of the debt if the contractor defaults on the deferred payment agreement or the underlying contract, or if bankruptcy or insolvency proceedings are instituted by or against the contractor.
3235.4If the contractor's appeal of the debt is pending, the deferred payment agreement shall include a provision, approved by the Director, requiring the contractor to diligently prosecute the appeal and to pay the debt in full either when the appeal is decided or when the contractor and the District agree on the debt amount.
3235.5If the contractor does not plan to appeal the debt or file an action under the disputes clause of the contract, the deferred payment agreement shall include a specific schedule of payments.
3235.6The deferred payment agreement shall include a provision, approved by the Director, allowing the contractor to make prepayments without prejudice for refund of overpayments and for crediting of interest.