Common use of Financing Costs Clause in Contracts

Financing Costs. The interest component associated with any contract or order may not exceed the greater of 9% or 125% of the rate set for the 20 G.O. Bond Index of average municipal bond yields as set by the Bond Buyer. (See 30 ILCS 305/2.) On the date Vendor is bound the rate cannot be exceeded. The current rate can be obtained by calling the Department of Central Management Services, Bureau of Information and Communication Services, Contract Administration. Should any contract or order be found to violate this provision, the contract may, at the State’s option, be reformed and adjustments made in the remaining payments to recoup excess interest paid or if all payments have been made, to receive a cash rebate.