Title 41 — Public ContractsRelease 119-73
§4503 Security for advance payments
Title 41 › Subtitle Subtitle I— - Federal Procurement Policy › Chapter CHAPTER 45— - CONTRACT FINANCING › § 4503
Summary
Advance payments need an agency head finding that they serve the public interest and must be backed by adequate security. That security gives the Federal Government a top claim on the contract property or on payments, effective immediately without filing or notice or other action.
Full Legal Text
Title 41, §4503
Public Contracts — Source: USLM XML via OLRC
Advance payments under section 4501 of this title may be made only on adequate security and a determination by the agency head that to do so would be in the public interest. The security may be in the form of a lien in favor of the Federal Government on the property contracted for, on the balance in an account in which the payments are deposited, and on such of the property acquired for performance of the contract as the parties may agree. This lien shall be paramount to all other liens and is effective immediately upon the first advancement of funds without filing, notice, or any other action by the Federal Government.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large) 450341:255(d).June 30, 1949, ch. 288, title III, § 305(d), 63 Stat. 396; July 12, 1952, ch. 703, § 1(m), 66 Stat. 594; Pub. L. 85–800, § 4, Aug. 28, 1958, 72 Stat. 966; Pub. L. 103–355, title II, § 2051(a)(4), (5), (d), Oct. 13, 1994, 108 Stat. 3304.
Reference
Citations & Metadata
Citation
41 U.S.C. § 4503
Title 41 — Public Contracts
Last Updated
Apr 6, 2026
Release point: 119-73