41 U.S.C. § 109 : US Code - Section 109: Advance or partial payments to subcontractors; excessive payments, interest, liability of war contractor

Search 41 U.S.C. § 109 : US Code - Section 109: Advance or partial payments to subcontractors; excessive payments, interest, liability of war contractor

(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
settlements 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 contracting 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.