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                            49.109-2 Reservations.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart49.049.149.249.349.449.549.6
Section49.10049.10149.10249.10349.10449.10549.10649.10749.10849.10949.11049.11149.11249.11349.11449.115
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49.109-2 Reservations.49.109-2 Reservations.       (a) 						            The TCO shall-                                                         (1) 								                Reserve in the settlement agreement any rights or demands of the parties that are excepted from the settlement;                                                            (2) 								                Ensure that the wording of the reservation does not create any rights for the parties beyond those in existence before execution of the settlement agreement;                                                            (3) 								                Mark each applicable settlement agreement with "This settlement agreement contains a reservation" and retain the contract file until the reservation is removed;                                                            (4) 								                Ensure that sufficient funds are retained to cover complete settlement of the reserved items; and                                                            (5) 								                At the appropriate time, prepare a separate settlement of reserved items and include it in a separate settlement agreement.                                                                             (b) 						            A recommended format for settlement of reservations appears in  49.603-9.    **Parent topic:**  49.109 Settlement agreements.
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