1. (a) Contracts may be entered into which contemplate the payment of interest or carrying charges only in the following conditions:

   1. (1) When the interest or carrying charge is required because the term of the contract is extended over a period of time; and
   2. (2) When a provision for termination of the contract is included in the contract, as provided in Arkansas Code § 19-11-238(c) and the rules promulgated pursuant thereto.
2. (b) Contracts may be entered into which contain a provision for the payment of the following charges on delinquent accounts: interest charges, carrying charges, late payment charges, or any other charge which may be construed as a penalty, but only if incurred sixty (60) days after the due date.
3. (c) Service charges may be paid on credit card procurements.

Codification Notes: This section was promulgated as R1:19-11-224 of the Procurement Rules prior to codification into the Code of Arkansas Rules.