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FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.3

FAR 32.304-6 Other collateral security.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section lists examples of other collateral security that may be required under guaranteed loans when necessary to protect the Government's interest. It notes these forms are seldom used but may still be invoked. For contractors, it signals that additional security beyond the usual may be requested in certain guaranteed loan situations.

Applies to: Guaranteed loans where protection of the Government interest is necessary

Key terms: collateral security · guaranteed loans · mortgages · liens · subordinations

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

The following are examples of other forms of security that, although seldom invoked under guaranteed loans, may be required when considered necessary for protection of the Government interest:

(a) Mortgages on fixed assets.

(b) Liens against inventories.

(c) Endorsements.

(d) Guarantees.

(e) Subordinations or standbys of other indebtedness.

← 32.304-5 Assignment of claims under contracts. · 32.304-7 Contract surety bonds and loan guarantees. →

Rule changes for FAR Part 32

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 32.304-6 Other collateral security · SpendQuery