Advance Payment

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Advance Payment


a payment that precedes a transfer of property, the fulfillment of work, or the rendering of services. Unlike a deposit, an advance payment is not a method of ensuring the fulfillment of an obligation and therefore must be reimbursed if the contract stipulating the advance payment is not fulfilled. According to Soviet legislation, an advance payment among citizens is determined by an agreement between the parties. As a general rule, socialist organizations do not have the right to make or receive advance payments, because this would mean that one organization finances another. Such financing was prohibited by law at the time the 1930 credit reform was enacted (Collection of Laws of the USSR, 1932, no. 74, art. 454). USSR legislation allows advance payments only in some isolated cases. For instance, state construction and installation organizations working on a contract basis have the right to ask for advance payments from their clients (kolkhozes, cooperatives, or public organizations); kolkhozes can request them from consumers’ cooperatives according to contracts for the sale of farm output on commission; and enterprises supplying gas, water, and electric power, communications enterprises, civil aviation, and research and development organizations can request them from contracting parties. Before the kolkhozes were directly credited by banks, they could request advance payments from the appropriate purchasing organizations. Finally, organizations rendering paid services to the population can sign contracts for advance payments.

In Soviet labor law, a planned advance payment is a sum of money paid in the case of piecework pay as part of the wage until the work stipulated in the order is completed. The amount of such an advance payment is set forth in the agreement between the administration and the trade union organization at the time the collective agreement is concluded; however, it cannot be smaller than the worker’s official wage rate for the time put in (Collection of Decrees of the USSR, 1957, no. 6, art. 68).

As a rule, making nonplanned advance payments to workers and employees is prohibited. In exceptional cases, an enterprise may make a nonplanned advance payment to an employee as part of his wage in an amount not greater than his monthly wage. The amount of advance payment to an employee for business trip expenses is determined by the administration.


References in periodicals archive ?
The governor had learnt that some contractors in the FATA after getting contracts for different development schemes were involved in receiving huge advance payments before the commencement of the ground work or on presenting certain preliminary fake documents.
Similarly, one of the gravest predicaments faced by the consumers of new cars is the requirement of hefty advance payments for placing the order to book a car.
Global Banking News-May 22, 2015--Ukraine parliament to ban advance payment of central bank profit
Each customer also agreed to pay A nonrefundable advance payments.
0-litre Skyactiv-G 145ps petrol models are available with advance payments ranging from PS899 (for the manual SE) to PS1,649 (SE-L Auto Nav).
Both types are available under the Motability programme with the Cross Country attracting an advance payment as low as PS299.
Advance payments have also been reduced on the Mazda3 Tamura and Venture diesels to PS799 and to PS1,799 for the sevenseat Mazda5 Venture MPV.
The X1 can be had from PS513 and PS1,499 for two-wheel-drive models with the cheapest 4x4 versions attracting advance payments of PS50 more.
Desert Academy deferred recognition of advance payments received during these years.
The offers include zero advance payments on a wider range of models.
Mazda has given its Motability programme a major boost this spring with the introduction of a series of improved offers, including nil advance payments on a wider range of models, until 30 June.
On the other hand, the advance payments and co-funds granted by the state to European projects last year totaled 17 billion lei, 4 billion lei more than in 2011.

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