§ 109. — Advance or partial payments to subcontractors; excessive payments, interest, liability of war contractor.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 41USC109]
TITLE 41--PUBLIC CONTRACTS
CHAPTER 2--TERMINATION OF WAR CONTRACTS
Sec. 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.
(July 1, 1944, ch. 358, Sec. 9, 58 Stat. 657.)
Application to Terminated War Contracts
For application of this section to war contracts terminated at or
before July 21, 1944, see section 124 of this title.
Section Referred to in Other Sections
This section is referred to in section 124 of this title.
