Page:United States Statutes at Large Volume 58 Part 1.djvu/676

 PUBLIC LAWS-CIH 358-JULY 1, 1944 Where mde by ad- contemplation of or related to termination of war contracts. Where me onts. T pay interim financing is made by advance payments or partial payments, it shall, insofar as practicable, consist of the following: contract price on (1) An amount equal to 100 per centum of the amount payable, at coraplated acceptable items. the contract price, on account of acceptable items completed prior to the termination date under the terms of the contract, or completed thereafter with the approval of the contracting agency; plus cost of mateial, (2) An amount equal to 90 per centum of the cost of raw materials, purchased parts, supplies, direct labor, and manufacturing overhead allocable to the terminated portion of the war contract; plus Allowable cot. (3) A rea s onable percentage of other allowable costs, including administrative overhead, allocable to the terminated portion of the war contract not included in the foregoing; plus Addit ona1 (4) Such additional amounts, if any, as the contracting agency n lts,ineu deems necessary to provide the war contractor with adequate interim financing. Alternative fnane- (5) In lieu of the costs referred to in clauses (2) and (3) of this 'gsubsection, where a detailed ascertainment of such costs is not suit- able to the conditions of any war contractor and is apt to cause delay in the obtaining of interim financing by him, that portion of such interim financing shall be equal to an amount not greater than 90 per centum of the estimated costs which are allocable to the terminated part or parts of the war contract or group of war con- tracts, and are ascertained in accordance with such methods and standards as the Director shall prescribe. lqidaedion baa (6) There shall be deducted from the amount of such interim financing any unliquidated balances of advance and partial payments theretofore made to such war contractor, which are allocable to the terminated war contract or the terminated part of the war contract. etms con d itl nons (c) The Director shall prescribe (1) the types of estimates, certifi- cates, or other evidence to be required to support such interim financing; (2) the terms and conditions upon which such interim financing shall be made including the use of standard forms for agree- ments with respect to such interim financing to the extent practicable; (3) the classes of cases in which such interim financing shall be refused; and (4) such methods of supervision and control over such interim financing as he deems necessary or desirable to assure ade- quate and speedy interim financing to subcontractors of the war contractor. lt(d) In case of an overstatement by any war contractor of the amount due on his termination claim or claims in connection with any interim financing under this Act, such contractor shall pay to the United States, as a penalty, an amount equal to 6 per centum of the amount of the overstatement, but the Director may suspend or modify any such penalty if in his opinion the imposition thereof would be inequitable. Any penalty may be deducted from any amounts due the war con- tractor upon such termination claim or claims, or otherwise, or may Oetcb- .on dbt'Sy be collected from the war contractor by suit. The obligation to pay u-. . any penalty imposed and to repay any interim financing made or assumed by the United States under this Act shall constitute a debt due to the United States within the meaning of Revised Statutes, section 3466 (31 U. S. C., sec. 191). vnces int (e) Any contracting agency may allow any advance payments, ocontr previously made or authorized by it in connection with the perform- ance of a war contract, to be used for payments and expenses related to the termination settlement of such contract, upon such terms and conditions as it deems necessary or appropriate to protect the interest of the Government. [58 STAT.

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