Circumstances for use of an LOC.
An LOC shall be used under the following circumstances:
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;
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
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]