Article 3. Funding. A. All funds appropriated by the Nitijela for services, functions and activities as set forth in Schedules Al and A2 shall be released to the Contractor on a letter of credit system on a quarterly basis in advance, except in those cases where the allocation of Federal Funds to the Marshal] Islands has been delayed, in which case the Government and the Contractor shall determine a payment schedule of funds reflecting availability of such funds in the Marshall Islands | General Fund. The specific details of operation of the system of release of funds hereunder shall be set forth in a separate funding memorandum between the Contractor and the Ministry of Finance of the Government, subject to agreement also by the Ministry of Health Services, which memorandum shall be appended to and become part of this agreement. B. The Contractor shall not incur any expenses in excess of the amounts which the Government agrees to pay without first obtaining the express approval of the Cabinet through the Ministry of Health for such excess expenditure. Should there be approval of such excess expenditure the Government shall reimburse the Contractor for such expenditures on such terms as the Contractor and the Government may agree. C. The Contractor and the Government shall cooperate to the maximum feasible extent with respect to obtaining and management of continuing and new grants. The parties expressly