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.

E. G. POLONSKII

References in periodicals archive ?
This is under a European directive, and it's still applying to two pits in Yorkshire and one in Nottinghamshire, where they've said they can't give them any money to keep them open, they can only advance money to close them this year.
Innovative long-term care insurance benefits like these mean policyholders won't have to always advance money for care and wait to be reimbursed, especially at a time when families have many other stressful financial issues to address," cites Slome.
Arawak's rights under the Facility Agreement may include the right to terminate the Loan Facility and to require repayment of the advance money under the Loan Facility.
Why would you be reluctant to advance money so you can help your constituents right away?
Advance money taken from tenants should be returned immediately at the time of vacating the flat.
He likened it to other schemes in which victims are asked to advance money for other causes, such as to claim alleged lottery winnings.
GOTTERIDGE: We've all heard stories of Ford Maddox Ford, and Ernest Hemingway and Thomas Wolfe, and how they got advances from their publishers, even though they were probably just, you know, drinking all of the advance money.
The holiday makers from Brotton arrived back in England talking of chaotic scenes on the Costa Del Sol after a Saltburn based travel agency had failed to advance money to the Spanish hotel.
The channel said Cineyug paid advance money for purchasing shares in Kalaignar TV, but the deal failed because of differences over the valuation of the shares.
Mohammed Mansha Churra: Banks act as financial intermediaries that accept deposits and advance money.
That is the message from the Asset Based Finance Association (ABFA), the organisation representing banks and other finance houses that advance money against invoices and other business assets.
Other financial problems continue in the company, reports said, like advance money collected from dealers that are being channeled for other purposes which has led to a delay of up to three months in delivery of vehicles.

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