Is the termination liability reserve part of a Foreign Military Sales purchaser's available cash?

The potential cost for which the U.S. Government would be liable if a particular Foreign Military Sales case that includes procurement contracts is terminated prior to completion.

A type of account, designated by law as a “trust fund,” regardless of any other meaning of the term “trust fund.” A trust fund account is usually either a receipt, an expenditure, or a revolving fund account (trust revolving fund account).

Authority issued by Defense Finance and Accounting Service Security Cooperation Accounting to a certifying officer or a disbursing activity authorizing the subsequent disbursement of a Foreign Military Sales country’s funds when such funds are available.

A legal document that serves as the eligible bank's guarantee to pay DSCA if the Foreign Military Sales (FMS) partner fails to make complete and timely quarterly payments on an FMS Letter of Offer and Acceptance (LOA), in accordance with the DD 645. It is a formal independent undertaking issued by a bank to DSCA, as the "beneficiary," which specifies the responsibilities of the bank and the FMS partner and establishes the ability for DSCA to draw upon the value of the SBLC when the FMS partner does not make a complete and timely payment.

The military department or defense agency responsible for the execution of military assistance programs. With respect to FMS, the military department or defense agency assigned responsibility by the Defense Security Cooperation Agency to prepare an LOA and to implement an FMS case. The implementing agency is responsible for the overall management of the actions that will result in delivery of the materials or services set forth in the LOA that was accepted by a foreign country or international organization.

List of dollar amounts and when they are due from the foreign customer. The payment schedule is included in the Letter of Offer and Acceptance (LOA) presented to the customer. After acceptance of the LOA, the payment schedule generally serves as the basis for billing to the customer. Changes in the estimated costs of an Foreign Military Sales case may require changes in the accompanying payment schedule.

Funds that are required to cover outlays and/or deliveries that are anticipated to occur before the receipt of the first quarterly payment. These funds must accompany the accepted Letter of Offer and Acceptance.

Source of funding that is provided directly from the purchaser.

An account established for each Foreign Military Sales country/international organization for the purpose of recording and safeguarding unidentified and certain earmarked funds for future use