                                 CODE OF VIRGINIA

INTEREST, ADMINISTRATIVE CHARGES AND PENALTY FEES (§ 2.2-4805)

A. Each state agency and institution may charge interest on all past due
accounts receivable in accordance with guidelines adopted by the Department of
Accounts. Each past due accounts receivable may also be charged an additional
amount that shall approximate the administrative costs arising under &#xA7;
2.2-4806. Agencies and institutions may also assess late penalty fees, not in
excess of ten percent of the past-due account on past-due accounts receivable.
The Department of Accounts shall adopt regulations concerning the imposition of
administrative charges and late penalty fees.

B. Failure to pay in full at the time goods, services, or treatment are rendered
by the Commonwealth or when billed for a debt owed to any agency of the
Commonwealth shall result in the imposition of interest at the judgment rate as
provided in &#xA7; 6.2-302 on the unpaid balance unless a higher interest rate
is authorized by contract with the debtor or provided otherwise by statute.
Interest shall begin to accrue on the 60th day after the date of the initial
written demand for payment. A public institution of higher education in the
Commonwealth may elect to impose a late fee in addition to, or in lieu of,
interest for such time as the institution retains the claim pursuant to
subsection D of &#xA7; 2.2-4806. Returned checks or dishonored credit card or
debit card payments shall incur a handling fee of $50 unless a higher amount is
authorized by statute to be added to the principal account balance.

C. If the matter is referred for collection to the Division, the debtor shall be
liable for reasonable attorney fees unless higher attorney fees are authorized
by contract with the debtor.

D. A request for or acceptance of goods or services from the Commonwealth,
including medical treatment, shall be deemed to be acceptance of the terms
specified in this section.

HISTORY: 1988, c. 544, § 2.1-732; 2001, c. 844; 2009, c. 797.