US Code

Public Law 119-73 (01/23/2026)

41 U.S.C. § 4505

Payments for commercial products and commercial services

(a)

Terms and Conditions for Payments .—

section 4501 of this titlePayments under 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 .—

section 4501 of this titleAdvance payments made under 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. 111–350, § 3124 Stat. 3791Pub. L. 115–232, div. A, title VIII, § 836(b)(18)(A)132 Stat. 1864(, , ; , (B)(i), , .)

Historical and Revision Notes

Revised

Section

Source (U.S. Code)

Source (Statutes at Large)

4505

41:255(f).

June 30, 1949, ch. 288, title III, § 305(f), as added Pub. L. 103–355, title II, § 2051(e), Oct. 13, 1994, 108 Stat. 3304, as amended Pub. L. 104–106, title XLIII, § 4321(a)(4), Feb. 10, 1996, 110 Stat. 671.

Editorial Notes

Amendments

Pub. L. 115–232, § 836(b)(18)(B)(i)2018—, substituted “Payments for commercial products and commercial services” for “Payments for commercial items” in section catchline.

Pub. L. 115–232, § 836(b)(18)(A)Subsecs. (a), (c). , substituted “commercial products or commercial services” for “commercial items”.

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Pub. L. 115–232section 836(h) of Pub. L. 115–232section 453b of Title 6Amendment by effective , subject to a savings provision, see , set out as an Effective Date of 2018 Amendment; Savings Provision note under , Domestic Security.