Page:United States Statutes at Large Volume 82.djvu/628

 586

PUBLIC LAW 90-448-AUG. 1, 1968

[82 STAT.

(d) No contract may be entered into under this section unless the Secretary finds that the pool, company, or organization will perform its obligations under the contract efficiently and effectively, and will meet such requirements as to financial responsibility, legal authority, and other matters as he finds pertinent. (e)(1) Any.such contract may require the pool, company, or organization or any of its officers or employees certifying payments or disbursing funds pursuant to the contract, or otherwise participating in carrying out the contact, to give surety bond to the United States in such amount as the Secretary may deem appropriate. (2) No individual designated pursuant to a contract under this section to certify payments shall, m the absence of gross negligence or intent to defraud the United States, be liable with respect to any payment certified by him under this section. (3) No officer disbursing funds shall in the absence of gross negligence or intent to defraud the United States, be liable with respect to any payment by him under this section if it was based upon a voucher signed by an individual designated to certify payments as provided in paragraph (2) of this subsection. (f) Any contract entered into under this section shall be for a term of one year, and may be made automatically renewable from term to term in the absence of notice by either party of an intention to terminate at the end of the current term; except that the Secretary may terminate any such contract at any time (after reasonable notice to the pool, company, or organization involved) if he finds that the pool, coml)any, or organization has failed substantially to carry out the contract, or is carrying out the contract in a manner inconsistent with the efficient and effective administration of the flood insurance program authorized under this title. SETTLEMENT AND AKBITRATION

SEC. 1347. (a) The Secretary is authorized to make final settlement of any claims or demands which may arise as a result of any financial transactions which he is authorized to carry out under this chapter, and may, to assist him in making any such settlement, refer any disputes relating to such claims or demands to arbitration, with the consent of the parties concerned. (b) Such arbitration shall be advisory in nature, and any award, decision, or reconmiendation which may be made shall become final only upon the approval of the Secretary. RECORDS A N D AUDITS

Ante, p. 582. Ante,

p. 584.

A c c e s s to rec ords for audit.

SEC. 1348. (a) The flood insurance pool formed or otherwise created vuidcr pait A of this chapter, and any insurance company or other private organization executing any contract, agreement, or other appropriate arrangement with the Secretary under part B of this chapter or this part, shall keep such records as the Secretary shall prescribe, including records which fully disclose the total costs of the program undertaken or the services being rendered, and such other records as will facilitate an effective audit. (b) The Secretary and the Comptroller General of the United Slates, or any of their duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of the pool and any such insurance company or other private organization that are pertinent to the costs of the program undertaken or the services being rendered.

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