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2026-07-06 10:51:44 -04:00

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LegalText 41 U.S.C. § 4505 Payments for commercial products and commercial services us united_states_code code_section 41 PUBLIC CONTRACTS 45 CONTRACT FINANCING 4505 41 U.S.C. § 4505 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc41@119-100.zip /us/usc/t41/s4505 data/legal/raw/us/code/title-41/usc41.xml 579c2d721bbb42155602faeb8a431e33d0475839f834a4514ac05cbfcd3fb665 0977ff7e7fefd99bbd25a86e009a9e4c2707301ec8c49233d17b6604e38702e3 4059bbe49172a52cb0ebfe0207407eaae664cc49c7945ac47e849170db99380b 2026-07-04 official
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41 U.S.C. § 4505 - Payments for commercial products and commercial services

Text

(a) Terms and Conditions for Payments.— Payments under section 4501 of this title for commercial products or commercial services may be made under terms and conditions that the head of the executive agency determines are appropriate or customary in the commercial marketplace and are in the best interests of the Federal Government.

(b) Security for Payments.— The head of the executive agency shall obtain adequate security for the payments. If the security is in the form of a lien in favor of the Federal Government, the lien is paramount to all other liens and is effective immediately on the first payment, without filing, notice, or other action by the Federal Government.

(c) Limitation on Advance Payments.— Advance payments made under section 4501 of this title for commercial products or commercial services may include payments, in a total amount not more than 15 percent of the contract price, in advance of any performance of work under the contract.

(d) Nonapplication of Certain Conditions.— The conditions of sections 4503 and 4504 of this title need not be applied if they would be inconsistent, as determined by the head of the executive agency, with commercial terms and conditions pursuant to this section.

(Pub. L. 111350, § 3, Jan. 4, 2011, 124 Stat. 3791; Pub. L. 115232, div. A, title VIII, § 836(b)(18)(A), (B)(i), Aug. 13, 2018, 132 Stat. 1864.)

Notes

Historical and Revision Notes RevisedSectionSource (U.S. Code)Source (Statutes at Large) 450541:255(f).June 30, 1949, ch. 288, title III, § 305(f), as added Pub. L. 103355, title II, § 2051(e), Oct. 13, 1994, 108 Stat. 3304, as amended Pub. L. 104106, title XLIII, § 4321(a)(4), Feb. 10, 1996, 110 Stat. 671.

Editorial Notes

Amendments2018—Pub. L. 115232, § 836(b)(18)(B)(i), substituted “Payments for commercial products and commercial services” for “Payments for commercial items” in section catchline. Subsecs. (a), (c). Pub. L. 115232, § 836(b)(18)(A), substituted “commercial products or commercial services” for “commercial items”.

Statutory Notes and Related Subsidiaries

Effective Date of 2018 AmendmentAmendment by Pub. L. 115232 effective Jan. 1, 2020, subject to a savings provision, see section 836(h) of Pub. L. 115232, set out as an Effective Date of 2018 Amendment; Savings Provision note under section 453b of Title 6, Domestic Security.