§ 2880. Prompt payment. 1. Definitions. As used in this section, the\nfollowing terms shall have the following meanings unless the context\nshall indicate another or different meaning or intent:\n (a) "Corporation" means every public authority and public benefit\ncorporation a majority of the governing board members of which are\neither appointed by the governor or serve as members by virtue of their\nservice as an officer of a state department, division, agency, board or\nbureau, or combination thereof.\n (b) "Contract" means an enforceable agreement entered into between a\ncorporation and a contractor.\n (c) "Contractor" means any person, partnership, private corporation or\nassociation:\n (i) selling materials, equipment, or supplies or leasing property or\nequipment to a corporation;\n (ii) constructing, reconstructing, rehabilitating or repairing\nbuildings, highways or other improvements for or on behalf of a\ncorporation; or\n (iii) rendering or providing services to a corporation pursuant to a\ncontract.\n (d) "Designated payment office" means the office designated by the\ncorporation to which a proper invoice is to be submitted by a\ncontractor.\n (e) "Prompt payment" means payment of a debt due and owing by a\ncorporation before interest accrues thereon pursuant to a statement\nadopted in accordance with this section.\n (f) "Proper invoice" means a written request for a contract payment\nthat is submitted by a contractor setting forth the description, price\nand quantity of goods, property, or services delivered or rendered, in\nsuch form and supported by such other substantiating documentation as\nthe corporation may reasonably require.\n (g) "Receipt of an invoice" means (i) the date on which a proper\ninvoice is actually received in the designated payment office, or (ii)\nthe date on which the corporation receives the purchased goods,\nproperty, or services covered by the proper invoice, whichever is later.\n (h) "Set-off" means the reduction by the corporation of a payment due\nto a contractor by an amount equal to the amount of an unpaid legally\nenforceable debt owed by the contractor to the corporation.\n (i) "Statement" means the rules and regulations adopted by a\ncorporation pursuant to subdivision two of this section and any\namendments thereto.\n 2. Statement adoption. Within one hundred twenty days after either the\neffective date of this section or the beginning of the existence of the\nrespective corporation, whichever is later, each corporation shall\npromulgate rules and regulations detailing its prompt payment policy.\n 3. Statement contents. (a) The statement shall include, but not be\nlimited to, a reference to this section and the following for each type\nor category of contract as determined by the corporation:\n (i) a description of the procedure to be followed by a contractor in\nrequesting payment under a contract;\n (ii) a schedule setting forth the time in which the corporation will\nmake prompt payment under a contract;\n (iii) a declaration that interest will be paid when prompt payment is\nnot made and a statement of the rate at which such interest will accrue;\n (iv) a list of the sources of funds available to the corporation to\npay an interest penalty on each type or category of contract; and\n (v) a list of facts and conditions which in the opinion of the\ncorporation's governing body reasonably justify extension of the date by\nwhich contract payment must be made in order for the corporation not to\nbecome liable for interest payments in accordance with subdivision seven\nof this section.\n (b) Such facts and conditions may include, but shall not be limited\nto, the following when:\n (i) in accordance with specific statutory or contractual provisions,\npayment must be preceded by an inspection period or by an audit to\ndetermine the resources applied or used by a contractor in fulfilling\nthe terms of the contract;\n (ii) the necessary state government appropri
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