Common use of Payments to Affiliated Organizations or Persons Clause in Contracts

Payments to Affiliated Organizations or Persons. Prior to making payments to affiliated organizations or persons (i.e., related party transactions), CONTRACTOR shall complete a disclosure statement identifying the nature of the affiliated, or related organization /persons. CONTRACTOR shall not make payments to affiliated organizations or persons for program expenses (e.g., salaries, services, rent, etc.) that exceed the lesser of actual cost or the reasonable cost for such expenses. A reasonable cost shall be the price that would be paid by one party to another when the parties are dealing at arm's length (fair market price). Organizations or persons (related parties) related to the CONTRACTOR or its members by blood, marriage, or through a legal organization (corporation, partnership, association, etc.) will be considered affiliated for purposes of this Agreement. COUNTY shall be solely responsible for determining affiliation unless otherwise allowed and approved by the State or federal agencies. Payments to affiliated organizations or persons will be disallowed upon audit to the extent the payments exceed the lower of actual costs or the reasonable costs (fair market value) for such items.

Payments to Affiliated Organizations or Persons. Prior to making payments to affiliated organizations or persons (i.e., related party transactions), CONTRACTOR Subrecipient shall complete a disclosure statement identifying the nature of the affiliated, or related organization /personsorganization/ persons. CONTRACTOR Subrecipient shall not make payments to affiliated organizations or persons for program Program expenses (e.g., salaries, services, rent, etc.) that exceed the lesser of actual cost or the reasonable cost for such expenses. A reasonable cost shall be the price that would be paid by one party to another when the parties are dealing at arm's length (fair market price). Organizations or persons (related parties) related to the CONTRACTOR Subrecipient or its members by blood, marriage, or through a legal organization (corporation, partnership, association, etc.) will be considered affiliated for purposes of this AgreementSubaward. COUNTY County shall be solely responsible for determining affiliation unless otherwise allowed and approved by the State or federal Federal agencies. Payments to affiliated organizations or persons will be disallowed upon audit to the extent the payments exceed the lower of actual costs or the reasonable costs (fair market value) for such items.