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 thos
cases where the allocation of Federal Funds to the Marshal]
Islands has been delayed, in which case the Government and th
Contractor shall determine a payment schedule of funds reflec
ting availability of such funds in the Marshall [stands
General Fund.
The specific details of operation of the syste
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 appendéd
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 Gover
ment 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 cooper
to the maximum feasible extent with respect to obtaining and
management of continuing and new grants.
The parties expres
=