[Code of Federal Regulations]

[Title 48, Volume 5]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR732.406-71]



[Page 43]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

             CHAPTER 7--AGENCY FOR INTERNATIONAL DEVELOPMENT

 

PART 732_CONTRACT FINANCING--Table of Contents

 

                     Subpart 732.4_Advance Payments

 

Sec. 732.406-71  Circumstances for use of an LOC.



    An LOC shall be used under the following circumstances:

    (a) The contracting officer has determined that an advance payment 

is necessary and appropriate in accordance with this subpart and the 

guidance provided in FAR 32.4;

    (b) USAID has, or expects to have, a continuing relationship of at 

least one year with the organization, and the annual amount required for 

advance financing will be at least $50,000; and

    (c) The Office of Financial Management, Cash Management and Payment 

Division (FM/CMP) agrees that the LOC payment method is appropriate.



[56 FR 67225, Dec. 30, 1991, as amended at 61 FR 39093, July 26, 1996]