§ 950.28. Payment of covered costs.
235 words·~1 min read·
/us/cfr/t10/s§ 950.28·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)General. The Department shall pay to a sponsor covered costs in accordance with this subpart and the terms of the Standby Support Contract. Payment shall be made in such installments and on such conditions as the Department determines appropriate. Any overpayments by the Department of the covered costs shall be offset from future payments to the sponsor or returned by the sponsor to the Department within forty-five
(45)days. If there is a dispute, then the Department shall pay the undisputed costs and defer payment of the disputed portion upon resolution of the dispute in accordance with the procedures in subpart D of this part. If the covered costs include principal or interest owed on a loan made or guaranteed by a Federal agency, the Department shall instead pay that Federal agency the covered costs, rather than the sponsor.
(b)Timing of Payment. The sponsor may receive payment of covered costs when:
(1)The Department has approved payment of the covered cost as specified in this subpart; and
(2)The sponsor has incurred and is obligated to pay the costs for which payment is requested.
(c)Payment process. The covered costs shall be paid to the sponsor designated on the Certification of Covered Costs required by § 950.23, or to the sponsor's assignee as permitted by § 950.13(h). A sponsor that requests payment of the covered costs must receive payment through electronic funds transfer.