Application

1   This regulation does not apply to money owed to the government

(a) in the capacity of an agent or trustee,

(b) by a corporation, association, board or commission to which the Financial Information Act applies,

(c) by a regional hospital district as defined in the Hospital District Act,

(d) by a municipality or regional district to which a grant under the Local Government Grants Act may be made,

(e) by the government of Canada,

(f) by an employee of the government in respect of overpayment of salary, wages, benefits or expenses,

(g) under a contract where the contract specifically provides for payment of interest to the government, or

(h) where another enactment specifically provides for payment of interest to the government.

When interest accrues

2   (1) Where money is owed to the government, the person who owes the money shall, subject to subsection (4), pay interest on the money calculated from the day the money becomes due.

(2) For the purposes of subsection (1), the money becomes due when

(a) the government issues an invoice or a written request for payment to the person who owes the money, or

(b) the goods have been delivered in good condition or the services have been performed satisfactorily in accordance with the contract governing the supply of goods or provision of services

(3) This section does not operate to require the payment of an amount of interest less than $5.

(4) Where full payment of an account is made within 30 days after the government issues an invoice or written request for payment of the amount owing to the government, then the payment of that amount, without the interest accrued since the date shown on the invoice, shall be accepted in settlement of the account.

When interest stops accruing

3   Interest under section 2 stops accruing on the date payment of the money is received by the government.

Rate of interest

4   (1) The rate of interest payable under section 2 shall, between July 1, 1983 and September 30, 1992, be

(a) during the period July 1, 1983 to September 30, 1983, 1 1/2% above the prime lending rate of the principal banker to the Province on June 15, 1983, and

(b) during each successive 3 month period, beginning on October 1, January 1, April 1 and July 1 in every year, 1 1/2% above the prime lending rate of the principal banker to the Province on the 15th day of the month immediately preceding that 3 month period.

(2) Commencing October 1, 1992, during each successive 3 month period beginning on October 1, January 1, April 1 and July 1 in every year, the rate of interest payable under section 2 shall be 3% above the prime lending rate of the principal banker of the Province on the 15th day of the month immediately preceding that 3 month period.

[am. B.C. Reg. 303/92.]

Method of calculation

5   On money owed to the government, interest shall be

(a) compounded monthly, and

(b) calculated on the number of days since the last compounding of interest or, where no compounding has yet occurred, since the interest commencement date.