Late Payment of Commercial Debts (Rate of Interest) (No. 2) Order 1998
| Jurisdiction | UK Non-devolved |
| Citation | SI 1998/2765 |
| Year | 1998 |
1998 No. 2765
CONTRACTS
The Late Payment of Commercial Debts (Rate of Interest) (No. 2) Order 1998
Made 12th November 1998
Laid before Parliament 12th November 1998
Coming into force 13th November 1998
The Secretary of State, having considered the extent to which it may be desirable to set the rate of statutory interest so as to protect suppliers whose financial position makes them particularly vulnerable if their qualifying debts are paid late and deter generally the late payment of qualifying debts, with the consent of the Treasury, in exercise of the power conferred on him by section 6 of the Late Payment of Commercial Debts (Interest) Act 19981, and of all other powers enabling him in that behalf, hereby makes the following Order:–
Citation and commencement
1. This Order may be cited as the Late Payment of Commercial Debts (Rate of Interest) (No. 2) Order 1998 and shall come into force on 13th November 1998.
Revocation
2. The Late Payment of Commercial Debts (Rate of Interest) Order 19982is hereby revoked.
Interpretation
3. In this Order, “the official dealing rate” means the rate announced from time to time by the Monetary Policy Committee3of the Bank of England (“the Bank”) and for the time being in force as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets.
Rate of statutory interest
4. The rate of statutory interest for the purposes of the Late Payment of Commercial Debts (Interest) Act 1998 shall be 8 per cent over the official dealing rate per annum.
Barbara Roche
Parliamentary Under Secretary of State for Small Firms, Trade and Industry,
Department of Trade and Industry
11th November 1998
Jane Kennedy
Jim Dowd
Two of the Lords Commissioners of Her Majesty’s Treasury
12th November 1998
(This note is not part of the Order)
This Order replaces the Late Payment of Commercial Debts (Rate of Interest) Order 1998 (S.I. 1998/2480), which is revoked by article 2. There was a defect in S.I. 1998/2480in that the consent of the Treasury had not been obtained.
The Late Payment of Commercial Debts (Interest) Act 1998 (“the Act”) provides qualifying creditors with a statutory right to claim interest on qualifying debts from qualifying debtors. This Order, made under section 6 of the Act, sets the rate of statutory interest...
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