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                            32.501-5 Other protective terms.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart32.032.132.232.332.432.532.632.732.832.932.1032.11
Section32.50032.50132.50232.50332.504
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32.501-5 Other protective terms.32.501-5 Other protective terms.       If the contracting officer considers it necessary for protection of the Government’s interest, protective terms such as the following may be used in addition to the Progress Payments clause of the contract:                                       (a) 						            Personal or corporate guarantees.                                          (b) 						            Subordinations or standbys of indebtedness.                                          (c) 						            Special bank accounts.                                          (d) 						            Protective covenants of the kinds in paragraph (p) of the clause at  52.232-12, Advance Payments.                                          (e) 						            A provision, included in the solicitation and resultant contract when first article testing is required (see  subpart  9.3), limiting progress payments on first article work by a stated amount or percentage.    **Parent topic:**  32.501 General.
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