Page:United States Statutes at Large Volume 58 Part 1.djvu/677

 58 STAT.] 78TH CONG., 2D SESS.-CH. 358 -JULY 1, 1944 (f) No interim financing shall be made by any contracting agency under this Act unless the terms of such financing provide for the liquidation by the war contractor of all loans, discounts, advance pay- ments, or partial payments thereunder not later than the time of final payment of the amount due on the settlement of the termination claim or claims of the war contractor involved or such time thereafter as the contracting agency deems necessary for the liquidation of such interim financing in an orderly manner. (g) Any contracting agency may settle, upon such terms and condi- tions as it deems proper, any claim or obligation due by or to the Government arising from or related to any interim financing made, acquired, or authorized by it. Any interim financing made, acquired, or authorized by any contracting agency before the effective date of this Act shall be valid to the extent it would be authorized under the provisions of this Act if made after its effective date. Sto. 9. (a) Any contracting agency may make advance or partial payments to any war contractor on account of any termination claim or claims, and may authorize, approve, or ratify any such advance or partial payments by any war contractor to his subcontractors, upon such conditions as it deems necessary to insure compliance with the provisions of subsection (b) of this section. Each contracting agency shall make final payments from time .to time on partial settlefnent or on settlements fixing a minimum amount due before complete settlement, or as tentative payments before any settlement of the claim or claims. (b) Where any such advance or partial payment is made to any war contractor by any contracting agency or by another war contractor under this section, except a final payment on a partial settlement, any amount in excess of the amount finally determined to be due on the termination claim shall be treated as a loan from the Government to the war contractor receiving it, and shall be payable upon demand together with a penalty computed at the rate of 6 per centum per annum, for the period from the date such excess advance or partial payment is received to the date on which such excess is repaid or extinguished. Where the advance or partial payment was made by a war contractor and authorized, approved, or ratified by any contract- ing agency, the war contractor making it shall not be liable for any such excess payment in the absence of fraud on his part and shall receive payment or credit from the Government for the amount of such excess payment. SBo. 10. (a) Any contracting agency is authorized- (1) to enter into contracts with any Federal Reserve bank, or other public or private financing institution, guaranteeing such financing institution against loss of principal or interest on loans, discounts, or advances or on commitments in connection there- with, which such financing institution may make to any war con- tractor or to any person who is or has been engaged in performing any operation deemed by such contracting agency to be connected with or related to war production, for the purpose of financing such war contractor or other person in connection with or in con- templation of the termination of one or more such war contracts or operations; and (2) to make, enter into contracts to make, or to participate with any Government agency, any Federal Reserve bank or public or private financing institution in making loans, discounts, or advances, or commitments in connection therewith, for the pur- pose of financing any such war contractor or other person in COn- 9350*-4- -Pr. I -- - 2 657 Orderly liquidation. Claims due by or to the Government. Validity of prior financing. Advances to war contractors on ac- count of termination claims. Final payments Advancesinexcessof amount fnally deter- mined to be due. Where made by contractor. Guaranteeing fnan. elal institutions against los on loans, etc. Diect loans or om- mitments.

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