Legislative Update

Law no. 72/2013 on restricting late payments of obligations deriving from agreements concluded between professionals or between professionals and public authorities (the “Law”)

Published Official Gazette no. 182/2013
Connections Implements Directive 2011/7/EU of the European Parliament and of the Council
Entry into force 5 April, 2013
Description The Law sets legal and mutually agreed (via agreement) time limits for payments and accrual of delay penalties for payments resulting from agreements between professionals or between professionals and public authorities.

I. Applicability

–          Payments resulting from agreements concluded between professionals;

–          Payments resulting from agreements concluded between professionals and public authorities;

–          Payment obligations for which the parties have not set payment time-limits or delay penalties via the agreement.

II. Not applicable to:

–          Payments registered in the statement of assets in insolvency procedures;

–          Agreements concluded between professionals and consumers (natural persons);

–          Agreements concluded before entry into force of the Law.

III.  Delay penalty application prerequisites:

a.    The creditor has performed its contractual obligations;

b.    The creditor has not received payment when due.

IV.  If no time limit is set in the agreement for payment, delay penalty shall be accrued:

a.    After 30 calendar days from receiving the invoice;

b.    After 30 calendar days from the receipt of the goods or delivery of the services, if the receipt of the invoice is uncertain;

c.    If special procedures for the receipt of goods/delivery of services are necessary, after 30 calendar days from the performance of such procedures; time limit for performing procedures is of 30 days, but can be extended under special circumstances.

V. Payment time limits for agreements concluded between professionals:

a.    Maximum 60 calendar days; can be extended if not abusive;

b.    Payments may be made in instalments;

c.    Parties may not decide on the date for issuing/receiving the invoice.

VI. Payment time limits for agreements concluded between professionals and public authorities:

i. Legal time limits

a.    30 calendar days from receiving the invoice;

b.    30 calendar days from receiving the goods/delivery of services, if the receipt of the invoice is uncertain;

c.    If special procedures for the receipt of goods/delivery of services are necessary, within 30 calendar days from the performance of such procedures; time limit for performing procedures is of 30 days, but can be extended under special circumstances;

d.    Parties may not decide on the date for issuing/receiving the invoice;

e.    Special provisions for public institutions in the healthcare system and public healthcare providers: maximum 60 calendar days.

ii.        Agreement time limits

–          Same as legal time limits, with the possibility for such time limits to be extended to a maximum of 60 calendar days if such is indicated in the agreement and tender documentation, is justified and is not abusive.

VII. Debt recovery costs

–          The creditor is entitled to damages covering all its debt recovery costs;

–          The Law introduces a minimum damage of 40 euro, if payment is not made when due.

VIII.  Other provisions

–          Abusive agreement provisions in relation to payment time limits, delay penalties and minimum damages.

 

CONTACT INFORMATION

Radu Ionescu

Managing Partner

radu@ionescusava.ro

 

This legislative update is a summary and has been published strictly for Ionescu si Sava’s clients and business associates. This update is not intended to be and should not be construed as legal advice provided to any of its recipients or readers. Any addressees are solely liable for the use of the information contained herein and Ionescu si Sava shall not be held responsible for any damages, direct, indirect or otherwise, arising from the use of the information contained herein.