Page:United States Statutes at Large Volume 58 Part 1.djvu/678

 PUBLIC LAWS-CH. 358-JULY 1, 1944 nection with or in contemplation of the termination of such war contracts or operations. security. (b) Any such loan, discount, advance, guaranty, or commitment in connection therewith may be secured by assignment of, or covenants to assign, some or all of the rights of such war contractor or other person in connection with the termination of such war contracts or operations, or in such other manner as the contracting agency may prescribe. Federal Reserve Subject to such regulations as the Board of Governors of the ban . Federal Reserve System may prescribe with the approval of the Direc, tor, any Federal Reserve bank is authorized to act, on behalf of the contracting agencies, as fiscal agent of the United States in carrying out the purposes of this Act. Athorty of - (d) This section shall not limit or affect any authority of any con- tractmg agency, under any other statute, to make loans, discounts, or advances, or commitments in connection therewith or guaranties thereof. . '

ADVANCE NOTIO .- 11. (a) In order to facilitate the efficient use of ia manpower, and facilities for war and civilian purposes, eachcontract. ing agency- Notceto rimeeon- (1) shall provide its prime contractors with notice of termina- t. tion of their prime contracts as far in advance of the cessation of work thereunder as is feasible and consistent with the national security without permitting unneeded production or performance; e= (2) shall establish procedures whereby prime contractors shall tors. provide affected subcontractors with immediate notice of termina- tion; and won inrtain o.f (3) shall permit the continuation of some or all of the work under a terminated prime contract whenever the agency deems that such continuation will benefit the Government or is necessary to avoid substantial injury to the plant or property. Cessationeorsuspen- (b) Whenever a contracting agency hereafter directs a prime con- tractor to cease or suspend all or a substantial part of the work under a prime contract, without terminating the contract, then, unless the Compensation to contract provides otherwise, (1) the contracting agency shall com- contractor. pensate the contractor for reasonable costs and expenses resulting from Eletion to treat as such cessation or suspension, and (2) if the cessation or suspension termination extends for thirty days or more, the contractor may elect to treat it as a termination by delivering written notice of his election so to do to the contracting agency, at any time before the contracting agency directs the prime contractor to resume work under the contract. thLmitation on au- (c) The Director shall have no authority under this Act to regulate or control the classes of contracts to be terminated by the contracting agencies. REMOVAL AND STORAGE OF MATERIALS Trmination inven- toy. SEC. 12. (a) It is the policy of the Government, upon the termination of any war contract, to assure the expeditious removal from the plant of the war contractor of the termination inventory not to be retained or sold by the war contractor. (b) Any war contractor may submit to the contracting agency con- cerned or to any other Government agency designated by the Director, one or more statements showing the materials which such war con- tractor claims to be termination inventory under one or more war contracts and desires to have removed by the Government. Such state- ments shall be prepared in such form and detail, shall be submitted in such manner, through the prime contractor or otherwise, and shall be [58 STAT.

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