Client Late-Payment Interest, Work-Pause & IP-Hold Clause Generator

Currently 15 calendar days past Net-7 milestone payment terms.

1.5%/mo (18% APR) accrued finance charge plus sprint re-allocation fee.

Full balance required before resuming sprints or transferring repository IP ownership.

2. SOW Late-Payment, Work-Pause & IP-Hold Clause

SECTION 9 — PAYMENT TERMS, AUTOMATIC WORK SUSPENSION & INTELLECTUAL PROPERTY HOLD

1. Late-Payment Finance Charge (1.5% Per Month):
All Milestone and Retainer invoices issued to Acme Operations & Co ("Client") are due Net-7 upon receipt unless otherwise stated on the invoice face. Any undisputed balance remaining unpaid past the Due Date shall accrue a late finance charge of 1.5% per month (18.0% APR), or the maximum rate permitted by applicable law, calculated daily from the original Due Date.

2. Automatic Work Pause & Schedule Extension (Day 7+ Overdue):
If any invoice remains unpaid seven (7) calendar days past its Due Date, Agency reserves the right to automatically pause all active development, sprint capacity, staging deployments, and third-party API workflows without liability or breach of this Agreement. Upon payment clearance, all downstream Milestone target dates shall automatically shift forward day-for-day plus a $150 Re-Mobilization Fee to re-allocate engineering capacity.

3. Conditional IP Assignment & Credentials Hold:
Notwithstanding any other provision of this Agreement, all source code, custom scripts, n8n/Make JSON blueprints, database schemas, and administrative credentials remain the sole and exclusive property of Agency—and no license or Intellectual Property assignment to Client takes effect—until 100% of principal ($6,500), accrued late finance charges, and approved Change Orders have cleared in full.

3. Overdue Invoice & Sprint Suspension Notice

Subject: Action Required: Overdue Milestone Invoice ($6,500) & Sprint Schedule Status — Acme Operations & Co

Hi Acme Operations & Co Team,

I hope your week is going well.

Our accounting system flagged that Milestone Invoice #SP-1055 for $6,500 is currently 15 calendar days past due.

Per Section 9 of our Statement of Work, here is the current status of the account and delivery schedule:
• Principal Invoice Amount: $6,500
• Accrued Late Finance Charge (1.5%/mo prorated, 15 days): $48
• Sprint Re-Mobilization Fee: $150
• Total Balance Due to Resume Active Delivery: $6,698

To keep your engineering resources reserved and avoid shifting downstream milestone delivery dates (or pausing staging environment access), please settle the balance of $6,698 today via the payment link on your invoice and reply with the remittance confirmation.

As soon as payment clears, our team will immediately unlock the next milestone sprint and confirm your updated delivery timeline.

Best regards,
Accounts & Delivery Operations