(1) Where a prime contractor who has entrusted a subcontractor with manufacturing, etc., receives advance payment from the person placing an order, he or she shall pay an advance to the subcontractor within 15 days after he or she received it (the day on which the prime contractor entrusted manufacturing, etc., if he or she had received it before he or she entrusted manufacturing, etc.) so that he or she may undertake manufacturing, repair, or construction, or service performance in accordance with the contents and ratio of the advance.
(2) Where a prime contractor pays an advance received from the person placing an order after the deadline under paragraph (1), he or she shall pay interest calculated by the interest rate determined and publicly notified by the Fair Trade Commission in consideration of economic circumstances, such as late-payment interest rates, applied by banks under the Banking Act, which is within 40/100 per annum for the period that has passed. <Amended on May 17, 2010>
(3) Article 13 (6), (7), (9), and (10) shall apply mutatis mutandis to bill discount charge, payment of fees, bill discount rate, and rate of fees where advance payment under paragraph (1) is made by bill or means of payment in place of a bill. In such cases, "60 days from the date of receipt of such subject matter, etc. have been received" shall be deemed "15 days from the date the prime contractor received advance payment from the person placing an order".[This Article Wholly Amended on Apr. 1, 2009]