---
kind: "section"
citation: "48 C.F.R. § 32.501-5"
title: "48"
number: "32.501-5"
heading: "Other protective terms."
url: "https://uscodex.org/cfr/48/32.501-5"
---

# §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](/cfr/48/subpart9.3.md)), limiting progress payments on first article work by a stated amount or percentage.

## Notes

### Amendments

[48 FR 42328, Sept. 19, 1983, as amended at 55 FR 52794, Dec. 21, 1990]

### Authority

Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42328, Sept. 19, 1983, unless otherwise noted.

### Amendments

[48 FR 42328, Sept. 19, 1983, as amended at 55 FR 52794, Dec. 21, 1990]