---
kind: "section"
citation: "48 C.F.R. § 49.109-2"
title: "48"
number: "49.109-2"
heading: "Reservations."
url: "https://uscodex.org/cfr/48/49.109-2"
---

# §49.109-2. Reservations.

- (a) **The TCO shall—**
  - (1) Reserve in the settlement agreement any rights or demands of the parties that are excepted from the settlement;
  - (2) Ensure that the wording of the reservation does not create any rights for the parties beyond those in existence before execution of the settlement agreement;
  - (3) Mark each applicable settlement agreement with “This settlement agreement contains a reservation” and retain the contract file until the reservation is removed;
  - (4) Ensure that sufficient funds are retained to cover complete settlement of the reserved items; and
  - (5) At the appropriate time, prepare a separate settlement of reserved items and include it in a separate settlement agreement.
- (b) A recommended format for settlement of reservations appears in 49.603-9.

## Notes

### Authority

Authority: 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 42447, Sept. 19, 1983, unless otherwise noted.