---
kind: "section"
citation: "2 C.F.R. § 1108.265"
title: "2"
number: "1108.265"
heading: "Obligation."
url: "https://uscodex.org/cfr/2/1108.265"
---

# §1108.265. Obligation.


Obligation means:

- (a) When used in conjunction with a DoD Component's award, a legally binding agreement that will result in outlays, either immediately or in the future. Examples of actions through which a DoD Component incurs an obligation include the grants or agreements officer's signature of a grant, cooperative agreement, or technology investment agreement (or modification of such an award) authorizing the recipient to use funds under the award.
- (b) When used in conjunction with a recipient's or subrecipient's use of funds under an award or subaward, an order placed for property and services, a contract or subaward made, or a similar transaction, during a given period that requires payment during the same or a future period.

## Notes

### Authority

Authority: 5 U.S.C. 301 and 10 U.S.C. 113.

### Source

Source: 85 FR 51230, Aug. 19, 2020, unless otherwise noted.